The CPI is a statistical estimate realiseed using the prices of a sample of representative items whose prices are collected periodically. Sub-indexes and sub-sub-indexes are computed for different categories and sub-categories of goods and services, being feature to produce the overall index with weights reflecting their shares in the total of the consumer expenses cover by the index. It is one of several price indices calculated by near national statistical agencies. The annual percentage change in a CPI is apply as a measure of inflation. A CPI can be used to index (i.e., adjust for the effect of inflation) the real value of wages, salaries, pensions, for set prices and for deflating monetary magnitudes to show changes in real values. In most countries, the CPI is, along with the population census and the USA field of study Income and Product Accounts, one of the most closely watched national economical statistics.
Introduction
Two basic types of data are needed to construct the CPI: price data and weighting data. The price data are collected for a sample of goods and services from a sample of sales outlets in a sample of locations for a sample of times. The weighting data are estimates of the shares of the different types of expenditure in the total expenditure covered by the index. These weights are usually based upon expenditure data obtained from expenditure surveys for a sample of households or upon estimates of the composition of consumption expenditure in the National Income and Product Accounts. Although some of the sampling of items for price secernate is done using a sampling frame and probabilistic sampling methods, many...If you want to get a full essay, order it on our website: Ordercustompaper.com
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