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When a formerly centrally-planned economy frees prices and allows or compels producers to respond to market signals, conventional measures tend to severely overstate short–run output decline and inflation. In part the overstatement stems from neglect of private sector activity, or from belated recognition of inflation previously disguised as quality improvements. Even when individual prices and outputs are correctly measured, however, shifts in relative prices consequent to price decontrol create a serious aggregation problem. Moreover, the standard indices ignore the deflationary trends in black markets. Superior growth and inflation indices are devised using a combination of official and black market prices.

Inflation --- Macroeconomics --- Money and Monetary Policy --- Economics: General --- Index Numbers and Aggregation --- leading indicators --- Socialist Systems and Transitional Economies: National Income, Product, and Expenditure --- Money --- Price Level --- Deflation --- Informal Economy --- Underground Econom --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Economics of specific sectors --- Monetary economics --- Informal economy --- Price indexes --- Price controls --- Monetary base --- Economic sectors --- Prices --- Informal sector --- Economics --- Government policy --- Money supply --- Russian Federation