Wednesday, August 04, 2010

How is the CPI figured?

The prices of 95,000 items from 22,000 stores, and 35,000 rental units are added together and averaged. They are weighted this way: Housing: 41.4%, Food and Beverage: 17.4%, Transport: 17.0%, Medical Care: 6.9%, Other: 6.9%, Apparel: 6.0%, Entertainment: 4.4%.

Do you think that represents the way you experience prices? I don't. Nothing here about taxes, city, county, state of government fees. Nor does it take into account the size of the product shrinking or getting larger relative to it's price.

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