Alternative price and quantity indices for fresh fruits and vegetables

For central banks, whose main objective is price stability, it is crucial to expand information sets that support monitoring price development and advance methods that contribute to timely and sound predictions. Fruit and vegetable prices, which make up about a quarter of the food and non-alcoholic beverages group with the highest weight in the CPI basket, exhibit high seasonal and irregular changes due to unbalanced demand and supply conditions. Although monitoring developments in the fruit and vegetable sub-group is important due to both food security and the weight structure of the basket, available data sets and indicators are quite limited. This study aims to introduce new leading indicators that we have developed that enable monitor supply, demand and price developments of fruits and vegetables closely.