As the statistics become biased due to such technical limitations, some argue that it is undesirable to aim at zero inflation based on a specific price indicator. In addition, if there is a downward rigidity in certain prices and wages due to business practices and contractual constraints, the cost of achieving zero inflation could become substantial.
In view of the significance of price stability as discussed earlier, a more practical criterion would be the sustainability of price stability in the medium to long term. This is because prices serve as a yardstick not only for deciding current production and consumption, but also for deciding the activities that lead to future economic developments, such as business fixed investment and savings.