Google to map inflation using web data
Posted in: Internet Use/New Technologies at 12/10/2010 18:53
Google is using its vast database of web shopping data to construct the 'Google Price Index' - a daily measure of inflation that could one day provide an alternative to official statistics.
The work by Google's chief economist, Hal Varian, highlights how economic data can be gathered far more rapidly using online sources. The official Consumer Price Index data are collected by hand from shops, and only published monthly with a time lag of several weeks.
Google creates new inflation measure
Google has created a new inflation measure - the Google Price Index - based on the cost of goods sold online which could prove more accurate and up-to-date than official statistics.
Google's mountain of web shopping data could also be used by the online group for economic forecasting ahead of the publication of official statistics, the Financial Times reported.