BIS Review 109/2009  1  d)  For CBK, we would prefer a non-tradable goods price index to compute our inflation index that responds or is affected by monetary policy directly and also links to the exchange rate and the issues of competitiveness.
For your information, Ladies and Gentleman, many countries are currently publishing statistics on tradable and nontradable inflation as part of their dissemination of inflation data. This allows central banks to easily compute the profile of real exchange rate. e)  Finally, we want an inflation index that comes close to measuring or reflecting the cost of living.