Calculation of the Consumer Price Index (CPI)
- What are the characteristics of the items listed as strengths?
- What are the characteristics of the items listed as weaknesses?
- If the CPI is imperfect, why do we use it?
...e base year chosen, and it may not reflect improvements in the quality of the goods we purchase. For example, we now have access to much better electronic and computerized goods than were available in 1982 (the current base year). So, while it may appear that a basket of goods containing such items is more expensive, in fact the value of the goods is much better. ...