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Price bouncing example with one link at January

Posted By: Andrew Baldwin December 21, 2012 10:40 pm
Posted In: RPI/CPI User Group
Posted In Thread: RE:Price Bounce Effect
Tags/Keywords:
Tags : inflation, RPI, CPAC, Formula effect, ONS

Description

This worksheet shows an example where a direct Carli index shows no bias over 24 months, but a strong upward bias when it is linked at the month of January (as in the RPI), due to a reversal of price behaviour by the two components from one year to the next (i.e. price bouncing).

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