Monetary Union Index Of Consumer Prices - MUICP
Categories: Econ
Every month since 1998, Eurostat publishes the Monetary Union Index of Consumer Prices (MUICP), which measures inflation of consumer prices within eurozone countries (countries that use the euro for their currency). The European Central Bank keeps a careful eye on the MUICP, since it’s responsible for keeping inflation in check...for all of Europe. No pressure.
Similar to the U.S.’s Consumer Price Index, the MUICP averages consumer prices of baskets containing similar goods and services. Each eurozone country calculates its own weighted average of baskets of goods, which gets aggregated into the Monetary Union Index of Consumer Prices. Looking at each eurozone country’s weighted basket alone is called the Harmonized Indices of Consumer Prices (HICPs), using the same methodology so that inflation and prices can be compared country-to-country.