The consumer price index

摘要: The consumer price index (CPI) is probably the most closely watched indicator of inflation in U.S. economy. In this article, Mark Wynne and Fiona Sigalla explain construction CPI evaluate some its potential shortcomings as a measure inflation. Specifically, they examine discrepancies that arise between true cost- of-living result improvements quality goods, introduction new substitution on part consumers different goods retail outlets, difficulty measuring prices actually paid by for purchase. ; authors review literature quantifies these discrepancies, with objective estimating magnitude overall bias CPI. argue that, fact, remarkably little known about extent or significance They conclude biases cause it to overstate no more than 1 percent year, less.