How can one determine the lag in the markets actual inflation Rate and the Inflation Price Index?
Wow… that’s a tough question. You would need a model or another index that was “more accurate” to use as a baseline. But, of course, an index of any type would likely have similar “lag” features. That would leave me suggesting that you’d basically need a model, either of global inflation (based on non-lagging factorrs) or that finds a way to reliably estimate the lag directly.
