MIT Launches The Billion Prices Project
Nothing against the CPI but this MIT project has the potential to revolutionize how average inflation is measured.
The concept has already been practiced in Argentina on the website InflacionVerdadera . On this website 130 of most the common foods and beverage are priced daily . This is then reported along with the CPI to provide citizens a better idea of their personal inflation rates.
Introduction (Via MIT)
The goal of the Billion Prices Project is to collect daily prices of retailers around the world. We expect that around June we will be downloading 40 million prices a day – hence, a billion a month. We collect item descriptions, price. We also get information if the item is on sale or not. We also collect information for “green”, “fair trade”, or any other “social conscious” indicator. Finally, when available we collect information if the prices are controlled by the government or not, and some information about the stocks (usually high, low, and out-of-stock).
Topics Covered (Via MIT)
1. Pricing Behavior
2. Aggregate Daily Inflation & RER
3. Green Index
4. Sales Behavior
5. Pass Through (Effects)