Google is using its vast database of web shopping data to construct the ‘Google Price Index’ – a daily measure of inflation that could one day provide an alternative to official statistics.Of course, Google is a big corporation and we know from the Democrats that big corporations can't be trusted. Perhaps we shouldn't trust anyone.
The mix of goods sold over the internet is different to the mix of goods sold in the wider economy.
The work by Google’s chief economist, Hal Varian, highlights how economic data can be gathered far more rapidly using online sources. The official Consumer Price Index data are collected by hand from shops, and only published monthly with a time lag of several weeks.
At the National Association of Business Economists conference in Denver, Colorado, Mr Varian said that the GPI was a work in progress and Google had not yet decided whether to publish it.
While the Federal Reserve is unlikely to panic just yet, Mr Varian said that the GPI shows a “very clear deflationary trend” for web-traded goods in the US since Christmas.
Tuesday, October 12, 2010
The Google Price Index
For those of you who refuse to trust the U.S. government's economic statistics: