If you have an Android phone / tablet and fancy a bit of cross comparison I highly recommend the Torque Lite app (free or better Pro version for not much more) and with a suitable Bluetooth dongle (eBay) plugged into your OBD port (if both exist etc), you can monitor both instantaneous and average MPG independently of the cars own system.
As per your observation the instant figures leap about all over the place unless you are holding a steady load. The average builds up over time and is therefore more representative of your overall mpg.
I used this to great advantage when helping the SIL buy a car and because we chose a 'bad / broken' model / engine combo, was quickly able to see (on a test drive) we were getting around 15 mpg not the 50 we were hoping for.
Cheers, T i m