Considering the wide range of CPI applications in the economy, the accuracy of estimating changes in an average price of a consumer basket of goods attracts the attention of many economists. How the index of consumer prices is calculated is not, as it might seem, a merely statistical problem....

The aim of the research is to find common driving forces in the inflation development across 10 emerging economies from the Central and Eastern Europe (CEE). As opposite to the previous research on this subject we are going to differentiate not only between regional and country specific common...

The experience of the last decades revealed the weakening of the relationship between inflation and a domestic output gap in many small open economies. However we may expect that there is still a substantial share of inflation basket which is sensitive to domestic economic activity, in...

Inflation perceived by consumers may differ from official statistics due to different baskets of goods and services both variables capture and by consumer loss aversion to price increases. Those effects, suggested by the Prospect Theory, are confirmed in many empirical studies, showing that...

This paper uses a restricted factor model to estimate the HICP index excluding relative prices changes. The index thus obtained, hereinafter referred to as pure inflation, demonstrates stronger relationship to the central bank instrument (short-term interest rate) than the HICP index and...

Paper presents the analysis of individual reactions functions of Polish Monetary Policy Council (MPC) members in the years 2004–2005. In the period under study the Polish central bank (National Bank of Poland) used the bias in the monetary policy as an indicator of future interest rate...

The paper presents the analysis of the long run causality behaviour between money and prices in the Polish economy during the transition period. The study makes use of the monetary inflation model known as the P-star model, originally developed by the FED economists at the end of 80-ties. The...

The purpose of the article is to evaluate the forecasting performance of dynamic factor models in forecasting inflation in the Polish economy. The factor models are based on the assumption that the behavior of most macroeconomic variables can be well described by several unobservable factors,...