In measuring inflation, the problem is that in a market-driven economy the supply of goods is constantly changing (increasing product differentiation: a development toward additional and supplementary as well as improved goods), and that such changes must be taken into account. A distinction is made between – improvements to an existing product, e.g. a refrigerator with lower electricity consumption comes onto the market and – a good is partially or completely replaced by another with the same consumer benefit, e.g. a microwave [device]: microwave [device], “nuker”) instead of electric or gas stove, USB stick instead of CD. – See procurement shifts, organic markup, inflation measurement, cost-of-living price index, product novelties, quality control, ramp, stimulus threshold. – Cf. ECB Monthly Bulletin, April 2014, p. 46 (consumer price measurement problems due to quality changes and new products).
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
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