How is the CPI calculated?
Frequently Asked QuestionsThe CPI is a product of a series of interrelated samples. First, using data from the 1990 Census of Population, BLS selected the urban areas from which data on prices were collected and chose the housing units within each area that were eligible for use in the shelter component of the CPI. The Census of Population also provided data on the number of consumers represented by each area selected as a CPI price collection area.
What is the CPI?
Frequently Asked QuestionsThe Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
What are some limitations of the CPI?
Frequently Asked QuestionsThe CPI may not be applicable to all population groups. For example, the CPI-U is designed to measure the experience with price change of the U.S. urban population and thus may not accurately reflect the experience of people living in rural areas. Also, the CPI does not produce official estimates for the rate of inflation experienced by subgroups of the population, such as the elderly or the poor.
How can I get information on the CPI?
Frequently Asked QuestionsInformation on the CPI is available from BLS electronically, through subscriptions to publications, and via telephone and fax, through automated recordings. Information specialists are also available in the national and regional offices to provide assistance. BLS on the Internet. Through the Internet, BLS provides free, easy, and continuous access to almost all published CPI data and press releases. The most recent month's CPI is made available immediately at the time of its release.
How is it Calculated?
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What area CPI should I use if there is no CPI for the area I live in?
Frequently Asked Questionsnoted in the answers to Questions 14 and 16, BLS strongly urges the use of the national or regional CPIs for use in escalator clauses. These indexes are more stable and subject to less sampling and other measurement error than are area indexes and, therefore, are more statistically reliable.
How is the CPI market basket determined?
Frequently Asked QuestionsThe CPI market basket is developed from detailed expenditure information provided by families and individuals on what they actually bought. For the current CPI, this information was collected from the Consumer Expenditure Survey over the two years 2001 and 2002. In each of those years, about 10,000 families from around the country provided information on their spending habits in a series of quarterly interviews.
How are CPI prices collected and reviewed?
Frequently Asked QuestionsEach month, BLS data collectors called economic assistants visit or call thousands of retail stores, service establishments, rental units, and doctors' offices, all over the United States to obtain information on the prices of the thousands of items used to track and measure price changes in the CPI. These economic assistants record the prices of about 80,000 items each month representing a scientifically selected sample of the prices paid by consumers for the goods and services purchased.
How are taxes treated in the CPI?
Frequently Asked QuestionsCertain taxes are included in the CPI, namely, taxes that are directly associated with the purchase of specific goods and services (such as sales and excise taxes). Government user fees are also included in the CPI. For example, toll charges and parking fees are included in the transportation category and an entry fee to a national park would be included as part of the admissions index.
Is the CPI the best measure of inflation?
Frequently Asked QuestionsInflation has been defined as a process of continuously rising prices or equivalently, of a continuously falling value of money. Various indexes have been devised to measure different aspects of inflation.
Will the CPI be updated or revised in the future?
Frequently Asked QuestionsYes. The CPI will need revisions, as long as there are significant changes in consumer buying habits or shifts in population distribution or demographics. By developing annual Consumer Expenditure Surveys and Point-of-Purchase Surveys, the Bureau has the flexibility to monitor changing buying habits in a timely and cost-efficient manner.
How are costs calculated?
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How are scores calculated?
Frequently Asked QuestionsThe way scores are calculated depends on the type of examination procedure administered. For more information, please refer to the section of the Application Process titled: "How you are rated." No. Additional education or work experience cannot be considered after your name has been placed on a register. However, you are allowed to re-apply nine months after being placed on a continuous register. At that point, you may submit any additional education and experience on your new application.
What goods and services does the CPI cover?
Frequently Asked QuestionsThe CPI represents all goods and services purchased for consumption by the reference population (U or W) BLS has classified all expenditure items into more than 200 categories, arranged into eight major groups.
Which index is the "Official CPI" reported in the media?
Frequently Asked QuestionsEach month, BLS releases thousands of detailed CPI numbers to the media. However the media usually focus on the broadest, most comprehensive CPI: the Consumer Price Index for All Urban Consumers (CPI-U) for the U.S. City Average for All Items, 1982-84=100. These data are reported on either a seasonally adjusted or an unadjusted basis. Often, the media will report some, or all, of the following: month percent change on a seasonally adjusted basis. (for example, from April 2001 to May 2001 = 0.
