A Political Economy of the Measurement of Inflation

Inflation should no longer be a politically sensitive indicator. Indeed, since the early 1980s, macroeconomic policies have managed to contain it. Yet the consumer price index (CPI), which is the main indicator for measuring inflation, remains very frequently consulted by citizens, due to its multiple uses. The CPI is used for indexing wages, pensions, but also various contracts such as food pensions. It is also used by National Accounts to deflate macroeconomic values and to provide data in “re