Consumer price index

Definition of Consumer price index

A consumer price index (in other words CPI) is aimed to measure changes in the price level of a basket of consumer goods and services, like food, transportation and medical care. The measurement of CPI is done by taking price changes for each item in the predetermined basket of goods.

Books on Consumer price index

Book 1 –

Consumer Price Index: Update of Boskin Commission's Estimate of Bias By Nancy R. Kingsbury (published by DIANE Publishing, 2000)

Book 2 –

Consumer Price Index Manual: Theory and Practice By International Monetary Fund, Statistical Office of the European Communities (published by International Monetary Fund, 2004)

How Consumer price index works?

There are two kinds of statistics weighted by the U. S. Bureau of Labor Statistics, CPI is designed for urban wage earners and clerical workers (CPI-W), and blinded CPI for all urban consumers (C-CPI-U). C-CPI- U is the best representation of the general public in term of population where it covers 87%.

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