Economic indicators such as Consumer Price Index (CPI) have frequently used in predicting future economic wealth for financial policy makers of respective country. Most central banks, on guidelines of research studies, have recently adopted an inflation targeting monetary policy regime, which accounts for high requirement for effective prediction model of consumer price index. However, predicti...

Estimates of sampling errors are of importance for survey designers when allocating sample sizes, in production as a tool for output editing and for users of statistics in decision making. The use of two-dimensional designs with elements of non-probability sampling methods, annually updated samples and complex estimators creates problems when estimating sampling variances for CPI-statistics. In...

The CPI compares the cost of acquiring a reference quantity vector at current and base prices. Such reference vector is the vector of mean quantities actually bought by a reference population, whose consumption patterns are investigated during a period τ prior to the index base period 0. In this paper we show that unless one takes into account the price change between these two dates, the CPI c...

ƒ The total CPI measurement bias is estimated to be about 0.5 percentage point per year over the 2005–11 period, consistent with the Bank’s earlier findings. Slightly more than half of this bias is caused by the fixed nature of the CPI basket of goods and services. More frequent updates of the weights that are used in the basket would reduce this error by more accurately reflecting changes in s...

We discuss the basic theory of price indices. These form the basis for the Consumer Price Index in the United States. We note situations which can lead to non-robustness and volatility in several different price indices. An experiment to replace survey-based data with point of sales (POS) scanner data is being carried out. We visually explore the scanner data and conclude that certain aspects o...

This paper computes a quality adjusted price index for the personal computer CPU from 1996 to 2000. The index is based on the pure characteristics demand model. I …rst compute the quality adjusted price index for the whole market, and show that it is very comparable with the hedonic price index but more sensitive to changes in product quality. Two types of the hedonic index are considered. One ...

The increase in nonlabor input cannot be measured directly in physical terms. Nonlabor input is estimated by taking the total increase in nonlabor costs during the period and deflating it by a price index. Under this procedure, the increase in the price index represents the increase resulting from prices and the residual (nonlabor cost in constant dollars) represents the nonlabor input. (The ra...