The Government plans to revise the formula it uses to measure inflation.

Measuring inflation, he acknowledges, "is more of an art than a science, unfortunately."

Mr. Greenspan's speech was mostly about the problems of measuring inflation, but deflation did come up.

There are two basic system of measuring inflation present today.

Economists defined certain customer baskets to be able to measure inflation.

To measure overall inflation, the price change of a large "basket" of representative goods and services is measured.

As this is the most applicable method to measure inflation in our economy.

In recent years, the government's economists have gotten much better at measuring inflation, introducing some new products, like Viagra, into the index within months.

Especially when you're trying to measure inflation.

So, for the past 22 years, it has measured inflation in the cost of housing in a rather indirect way.