Modernizing the consumer price index for the 21st century / Panel on Improving Cost-of-living indexes and Consumer Inflation Statistics in the Digital Age ; Committee on National Statistics ; Division of Behavioral and Social Sciences and Education.

Issuing body
National Academies of Sciences, Engineering, and Medicine (U.S.). Panel on Improving Cost-of-living indexes and Consumer Inflation Statistics in the Digital Age [Browse]
Format
Book
Language
English
Published/​Created
Washington, DC : The National Academies Press, [2022]
Description
xiv, 178 pages : color illustrations ; 23 cm.

Details

Subject(s)
Issuing body
Series
Consensus study report. [More in this series]
Summary note
"The Consumer Price Index (CPI), produced by the Bureau of Labor Statistics (BLS), is the most widely used measure of inflation in the U.S. It is used to determine cost-of-living allowances and, among many other important private- and public-sector applications, influences monetary policy. The CPI has traditionally relied on field-generated data, such as prices observed in person at grocery stores or retailers. However, as these data have become more challenging and expensive to collect in a way that reflects an increasingly dynamic marketplace, statistical agencies and researchers have begun turning to opportunities created by the vast digital sources of consumer price data that have emerged. The enormous economic disruption of the COVID-19 pandemic, including major shifts in consumers' shopping patterns, presents a perfect case study for the need to rapidly employ new data sources for the CPI. Modernizing the Consumer Price Index presents guidance to BLS as the agency embarks on a strategy of accelerating and enhancing the use of scanner, web-scraped, and digital data directly from retailers in compiling the CPI. The report also recommends strategies for BLS to more accurately estimate the composition of households' expenditures - or market basket shares - by updating this information more frequently and using innovative survey techniques and alternative data sources where possible. The report provides targeted guidance for integrating new data sources to improve the CPI's estimation of changes in the prices of housing and medical care, two consumer expenditure categories that are traditionally difficult to measure. Because of the urgency of issues related to income and wealth inequality, the report also recommends that BLS identify data sources that would allow it to estimate price indexes defined by income quintile or decile"-- Provided by publisher.
Bibliographic references
Includes bibliographical references (pages 163-174).
Contents
  • Intro
  • Front Matter
  • Acknowledgments
  • Contents
  • Summary
  • 1. Introduction
  • 2. The Potential of Alternative Data Sources to Modernize Elementary Indexes
  • 3. Higher-Level Aggregation and Shifting Consumer Behavior
  • 4. Modernizing Difficult-to-Measure Expenditure Categories : Housing/Shelter
  • 5. Modernizing Difficult-to-Measure Expenditure Categories : Medical Care
  • 6. Supplemental Subgroup Price Indexes
  • 7. Organizational Considerations and Overarching Guidance
  • References
  • Appendix: Biographical Sketches of Panel Members.
Other title(s)
Modernizing the consumer price index for the twenty-first century
ISBN
  • 9780309286985 ((paperback))
  • 0309286980 ((paperback))
LCCN
2022942195
OCLC
1344009175
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