Volker Wieland thinks it makes sense to include broader measures of inflation ("Handelsblatt")

The discussion on how best to measure inflation is gaining momentum. The German government supports the project. According to Prof. Volker Wieland, a sensible approach would be to look at broader measures of inflation such as the consumption deflator or the GDP deflator. Both deflators could supplement the consumer price index HICP, he said in an interview with the "Handelsblatt".

Wieland also considers the inclusion of owner-occupied housing in the calculation of inflation to be justified. The effects are greater in the southern European countries than in Germany, he continued, but on the whole rather small. Therefore, a broader measurement of inflation would be a more appropriate approach. "A more differentiated ECB communication would also be possible would also be possible if it is not possible to find a way to include the costs of owner-occupied housing in the HICP that is acceptable to everyone," Wieland said.

Handelsblatt: "Eine neue Messung der Inflation für die EU"