Inflation Measurement in Greece

Consumer price indices reflect changes through time in the prices of goods and services that are bought by households for the satisfaction of their consumption needs. In Greece, there are two different indicators of inflation issued by the National Statistical Service of Greece. The Consumer Price Index (CPI) is the official indicator of the domestic level used for the adjustment of wages and the adaptation of the purchasing power of the currency. The second is the Harmonized Index of Consumer Prices (HICP) created through coordinated and systematic efforts at harmonization within the European Union; it is used by the European Central Bank. This article describes these two measures and the differences between them are stressed. Both indicators are distinct from a macroeconomic perspective, nevertheless for confusion to be avoided and in the context of optimal practices and European convergence it would be best if these two indices were identical