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Consumer Price Index: Impact of Commodity Analystsí Decisionmaking Needs to Be Assessed
Martin de Alteriis. The Consumer Price Index (CPI) is the principal measure of trends in consumer prices & inflation in the U.S. The CPI tracks the prices of a fixed market basket of goods & services that consumers purchase. Commodity analysts (CA) make adjustments that effect the price changes that go into computing the CPI. Evidence indicates that substitutions have a significant impact on the CPI. This report describes: how CA decide whether to make adjustments; the adjustment methods they use; & how supervisors of CA review the CA decisions. Descriptions were gathered from CA on how they made decisions for specific substitutions. Charts & tables.
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