<p>CPI, PPI, PCE, etc. are themselves measures of inflation, which could happen in different sectors of the economy or in different levels of trade and production (see <a href="https://www.clevelandfed.org/our-research/center-for-inflation-research/inflation-101/what-is-inflation-get-technical.aspx" rel="nofollow noreferrer">here</a>). So it doesn't really make sense to ask the question as though there is one comprehensive &quot;Inflation&quot; with contributing factors. But CPI is the primary measure and one might use a statistical regression with time series data and a PPI variable along with other controls like population and interest rates to see how PPI change might be passed along to CPI. And ideally you would do this with international data because you could implicitly control for other variables like government policy and culture (<a href="https://stats.stackexchange.com/questions/4700/what-is-the-difference-between-fixed-effect-random-effect-and-mixed-effect-mode">fixed and random effects</a>).</p>

CC BY-SA 4.0
2021-11-19T19:24:04.157Z
2021-11-19T19:24:04.157Z
kleinerde
<p>How does one measure if inflation is due to demand pull or cost push?
Is this related to PPI vs CPI?</p>

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2021-11-20T00:09:55.327Z
Surely you could just look at changes in the money supply and changes in the amount of goods and services being delivered and see which has changed the most.
Mick
<inflation>
How to measure if inflation is due to demand pull or cost push?
user695652
# How to measure if inflation is due to demand pull or cost push?

(Asked by: username_0 on 2021-11-19)

How does one measure if inflation is due to demand pull or cost push?
Is this related to PPI vs CPI?

**Tags:** inflation
> **Comments:**
> **username_1**: Surely you could just look at changes in the money supply and changes in the amount of goods and services being delivered and see which has changed the most.  

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## 1 answers

### Answer by username_2 on 2021-11-19. Score: 1

CPI, PPI, PCE, etc. are themselves measures of inflation, which could happen in different sectors of the economy or in different levels of trade and production (see [here](https://www.clevelandfed.org/our-research/center-for-inflation-research/inflation-101/what-is-inflation-get-technical.aspx)). So it doesn't really make sense to ask the question as though there is one comprehensive "Inflation" with contributing factors. But CPI is the primary measure and one might use a statistical regression with time series data and a PPI variable along with other controls like population and interest rates to see how PPI change might be passed along to CPI. And ideally you would do this with international data because you could implicitly control for other variables like government policy and culture ([fixed and random effects](https://stats.stackexchange.com/questions/4700/what-is-the-difference-between-fixed-effect-random-effect-and-mixed-effect-mode)).


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