Experimental UK Regional Consumer Price Inflation with Model-Based Expenditure Weights

Abstract Like many other countries, the United Kingdom (UK) produces a national consumer price index (CPI) to measure inflation. Presently, CPI measures are not produced for regions within UK. It is believed that, using only available data sources, regional would be precise or reliable enough as an official statistic, primarily because partitioning of makes sample sizes too small. We investigate this claim by producing experimental CPIs publicly data, and deriving expenditure weights from Living Costs Food survey. detail methods challenges developing evaluate its reliability. then assess whether model-based such smoothing small area estimation significantly improve measures. find that can with however it appears excessively volatile over time, mainly due weights. Smoothing reliability series some extent but they remain policy use. This research provides valuable framework development more viable UK in future.