The general price level changes at least daily in all national economies and monetary unions under all monetary environments - low inflation, high inflation, hyperinflation and deflation.
The Daily CPI is thus the effective general price level index for a specific economy or monetary union.
This is confirmed by all countries that issue sovereign inflation-indexed bonds. They have to necessarily calculate their specific Daily CPIs and they have to make them publicly available by publishing them. They all update these government inflation-adjusted bonds daily in terms of their specific country Daily CPIs - the absolute proof the Daily CPI is the effective general price level index for an economy or monetary union.
The Daily CPI is an approximation of the monthly published CPI in that it is a lagged daily interpolation of the CPI.
The Daily CPI is always known in advance. There are never any surprises.
Some of the countries issuing sovereign inflation-indexed bonds:
- Hong Kong
- New Zealand
- Saudi Arabia
- South Africa
- South Korea
- United Arab Emirates
- United Kingdom
- United States
Nicolaas Smith Copyright (c) 2005-2018 Nicolaas J Smith. All rights reserved. No reproduction without permission.