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Changes to the CPI Index
The government computes indexes of the prices of a collection or market basket of goods and services. It measures the prices of a fixed market basket of some 300 consumer goods and services purchased by a typical urban consumer. Critics have charged that the CPI tends to overstate inflation.
The Bureau of Labor Statistics has made some changes to the way it calculates the Consumer Price Index . Read this month's press release and summarize the changes. Pay particular attention to item classification and structure.
Read the first few paragraphs of the testimony of the commissioner of labor statistics to learn why the Bureau of Labor Statistics (BLS) advocates changes: Economic News Release
How do you think the new calculations in the Consumer Price Index will affect people who are on fixed incomes, particularly when their income is adjusted annually for inflation?
