ABSTRACT

When prices increase at different rates, there is a shift of demand away from goods with higher rates towards those with lower, or substitution takes places. This is awell knownprinciple for the theory. It is alsowell known frompractical consumer experience, and with hyperinflation it becomes a major factor. Then it is felt that this significant part of experience should be reflected in the construction of index numbers. From the sides of both methodological principal and of data practicality, how this should be managed has made a dilemma.