Commission's data on euro-area inflation misleads
The balance statistic, used by the European Commission to gauge inflation perceptions, is a poor measure of actual inflation, research published by the Bank of Portugal finds.
Referring to the gap between observed and perceived inflation that emerged after the euro cash changeover, the central bank's research argues that the balance statistic should be used sparingly because it can present misleading information.
The research proposes using an alternative refined measure, which is computed using
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