The abundance and frequency of data will affect and enrich the behavior of both managers and all economic actors / players who process them in making optimal decisions.
Especially in light of the fact that we keep our eyes on changes in exchange rates, interest rates and stock market share prices every minute, it has been a big deficiency that there was no inflation data that affected them the most. For that purpose, Inflation Research Group (ENAG) in Turkey intends to achieve, not just daily, but hourly, and even dynamically sailing price index in the coming period.
ENAG will also end an important discussion lacking in empirical studies, especially of daily price indices that are missing in economic modeling based on time series in the estimation of interest and unemployment, and interest and inflation.
The ENAG inflation approach will also gain importance with its upcoming
effects on the decision- making process for central bank monetary policy.
Measuring inflation daily or hourly will probably eliminate the seasonal and
calendar effects that are generally mislead the consumer and decision makers
during the volatile price periods. Additionally, daily price indices will give more
detailed information on welfare change independent of base effect. The
results in this circumstances will be more efficient and representative of the
average consumers and their welfare.
Due to the reduction of the price index data frequency to daily, even hourly,
within the scope of dynamic welfare level measurement, we both eliminate the
base effect, and paint a more effective picture in terms of adjusting the
seasonal and calendar effect daily.
With its dynamic character, the ENAG Inflation Index will allow to adjust faster to the changes that will occur in consumption habits within its structure.