Beijing on October 12th news, according to foreign media reports, Google is using its huge online shopping data to develop the Google Index (Google index). The index, which reflects inflation, may one day become an alternative to official data.
Google price index project by Google’s chief economist Hal · (Hal Varian) is responsible for reflecting the use of network resources to more quickly collect economic data. Official consumer price index data collected from physical stores, although the monthly release, but usually lag weeks.
Ann said Monday in the city of Denver to attend the Colorado held the National Association for Business Economics Conference
Fan Li, Google price index in the process of being developed, Google has not yet decided when to launch the data. Varian said that the Fed may not feel fear of Google because Google launched Google price index, price index can only reflect the inflation trend of American network commodity transaction "very clear."
although this data does not appear seasonally adjusted, but the price has indeed increased over the same period last year. Excluding food and energy, the United States in August this year, the core consumer price index rose 0.9 percentage points.
Varian said: "if you look at the UK price index, you will find only a slight inflation trend." Varian stressed that the Google price index will not be a direct replacement for the consumer price index, because the sale of mixed products in the network is different from the general economic sales of hybrid products.
, for example, in the United States Google price index, real estate accounted for about 40% of the proportion, but in the consumer price index, the proportion of real estate is only about 18%. Varian pointed out that in the network, the better sales of mobile phones, watches and other items in the proportion of Google’s price index is higher, while the proportion of goods such as auto parts are not often sold in the network is lower.
Varian said that the Google index was inspired by their shopping experience. He said, a few months ago, his favorite pepper grinder is broken, which for my family, is undoubtedly a tragedy. When pepper (pepper Shopping) in the importation of "Google (grinder)", I was shocked by the price list of pepper grinder. When you are an economist, what do you want to do first?."
fan also discussed his work with Google search data for other economic forecasts. Varian also pointed out that Wall Street analysts predict the current is more accurate, because they can take into account the employee layoffs, but Google’s search data can effectively improve the accuracy of their forecasts.