Methodologies of Price Indices in Transition Countries


WP/95/106-EA
Methodologies of Price Indices in Transition Countries
by Kimberly Zieschang



A country's consumer and producer price indices are important
indicators for setting and monitoring the progress of macroeconomic policy.
Since late 1991, the IMF Statistics Department has conducted a program of
technical assistance on consumer and producer price measurement and index
compilation for the Baltic countries, the Russian Federation, and the former
Soviet Union countries. These economies are in various states of transition
from centrally planned to market organization and face special difficulties
in developing price indices that meet international methodological
guidelines.

This paper describes and summarizes the findings of this technical
assistance work over the past four years, and the methodology developed by
Fund experts to adapt international guidelines to the prevailing economic
conditions. The measurement problems and issues involved in compiling
consumer and producer price indices in the transition context are cataloged,
and the uses of these price series in compiling constant price national
accounts are discussed.