THE MANNER OF BUILDING SPECIFIC PARTIAL INTERPRETER INDICES AND THEIR PRESENTATION IN THE GENERAL INFLATION INDEX (GII)

The motivation to build the General Inflation Index (GII) stemmed from the fact that “inflation” is considered a “pathological” state of the economic system in a country or region, which has multiple effects, representing one of the important issues of fiscal, financial, monetary, and wage policies. A brief introduction principally intends to prove the importance of assessing inflation with the help of a maximally accurate and prompt index, with a major macroeconomic and microeconomic impact, at the institutional level, including research institutions, individuals or the public opinion, an index easy to capitalize in analyses, studies and calculations related to the evolution of the gross incomes of the population in real terms (wages and pensions), as well as the dynamics of purchasing power. This important initial issue also points out that measuring inflation exclusively by means of a consumer price index covers only a part of the scope of the inflationary phenomenon, which urgently implies a new statistical and economic concept – already discussed in three other articles published in the last two years – namely GII. The major section of the article is structured in the same way as a methodological guide, which secures a scientific character to an IGI construction project, and is based on a meticulous and methodical research intended to determine the area where inflation appears and unfolds, resulting from the relationship between the rising prices, tariffs and quotas in use, as well as the decrease in the purchasing and payment power of the national currency and the gross incomes of the population, which are expressed/measured through an integrated system of specific partial interpreter indices. The methodological and construction approach is synthetically described through the execution steps, applying, with creative instinct and intuition, statistical methods and procedures, which are finally presented in a general table, where all the component indices are distinguished, including their main groups. Some final remarks describe the main advantages of applying IGI to the economy of a country like Romania, and implicitly in the European Union (EU).