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What Drives Prices in Egypt?An Analysis in Light of International Experience$
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Hanaa Kheir-El-Din

Print publication date: 2009

Print ISBN-13: 9789774163036

Published to Cairo Scholarship Online: September 2011

DOI: 10.5743/cairo/9789774163036.001.0001

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Measuring Inflation in Egypt: Assessment of the CPI Accuracy

Measuring Inflation in Egypt: Assessment of the CPI Accuracy

(p.37) CHAPTER 2 Measuring Inflation in Egypt: Assessment of the CPI Accuracy
What Drives Prices in Egypt?

Hanaa Kheir-El-Din

American University in Cairo Press

The most widely used total or headline inflation measure is the Consumer Price Index (CPI). Inflation is often said to be “persistent increases in the general level of prices, or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond available quantities of goods and services.” Inflation measures developed based on this approach represent partial measures only, because they pertain to a number of individual transactions in specific markets. The cost of this subset of goods and services is then compared in two distinct periods to yield a measure of inflation.

Keywords:   inflation, Consumer Price Index, prices, purchasing power, money, currency, credit, transactions, goods, services

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