The Billion Prices Project (BPP) and inflation

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for few years now, billion prices project (bpp) has been collecting prices off web, test of alternative consumer price index.

http://bpp.mit.edu/

apparently, there commercial value product, so, there spin-off company sells daily index information on many countries. @ least u.s. trend info still available in public:

http://bpp.mit.edu/usa/

unfortunately, doesn't appear data eurozone easy post. in case, wondering how bpp calculated inflation doing compared official eu calculated inflation. know?

btw, turns out simple cpi in u.s. pretty close bpp. surprised me-- have thought, based on simplistic way cpi calculated, indices have diverged further.
 

the simple cpi not simple: uses household purchasing surveys in order weight relative value of aggregate prices.

should noted of prices mit collects b&m standard retail postings match shelf prices. in addition, considering survey component of cpi along fact people gravitate toward lower prices + convenience (thus opting buy online when makes sense), not think surprising numbers close.
 


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