CPI Methodology
Consumer Price Index CPI Methodology
In the US, the Federal Bureau of Labor Statistics (BLS) publishes Consumer Price Indexes (CPIs) every month for 85 metropolitan areas and the nation as a whole. The national CPI is often used as an indicator of inflation in the US.
The process by which the Bureau measures price changes to consumers begins during the first week of the month when BLS field representatives collect price information from selected department stores, supermarkets, service stations, doctors' offices, rental units, etc. Each month, about 90,000 prices are recorded on each visit. The field representative collects prices on specific goods or services with precisely defined qualities or characteristics. If the selected item is available the representative records its price. If it is not, or there have been any changes in the quality of the item since the last time prices were collected, the representative will select a new item or record the quality change. By collecting price data on a clearly defined market basket of products that consumers purchase for their day-to-day living needs, BLS ensures that the CPI will provide an accurate measure of change in prices.
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