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Article: Incorporating a geometric mean formula into the CPI.(consumer price indexes will use new statistical method starting January 1999)
- Article from:
- Monthly Labor Review
- Article date:
- October 1, 1998
- Author:
CopyrightCOPYRIGHT 1998 U.S. Bureau of Labor Statistics. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Beginning in January 1999, a new geometric mean formula will replace the current Laspeyres formula in calculating most basic components of the Consumer Price Index; the new formula will better account for the economic substitution behavior of consumers
This article describes an important improvement in the calculation of the Consumer Price Index (CPI). The Bureau of Labor Statistics plans to use a new geometric mean formula for calculating most of the basic components of the Consumer Price Index for all Urban Consumers (CPI-U) and the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This change will become effective with data for January ...