CONSUMER PRICE INDEX (CPI) -- SOURCES

METHODOLOGY AND CONCEPTS

1. The Consumer Price Index-Questions and Answers- pamphlet in CPI notebook, reference desk
2. "Revising the Consumer Price Index" - section in CPI notebook, reference desk
3. "Technical Notes" in each issue of CPI Detailed Report - current issue with magazines at reference desk, older issues on P.D. Wall, P.D. L2.38/3
4. "The Consumer Price Index", Ch.19 in BLS Handbook of Methods  Ready Reference, P.D. L2.3:2414

CPI AND RELATED DATA

1. CPI Notebook--at Reference Desk with magazines
	a. most current data we have
	b. local hotline number for updates (recorded message for U.S. and local data)
	c. both U.S. and local data
	d. some historical information
	e. lack of detail on expenditure categories
	f. older information not converted to 82-84 index

2. CPI Detailed Report--current at Reference Desk with magazines
	a. somewhat current and historical data
	b. more detail on expenditure categories
	c. special indexes
	d. information on regions and selected cities
	e. information on future release dates

3. Wall Street Journal
	a. latest figures for U.S. published day after release date(see chart on front page)

4. Other sources of CPI data which are somewhat current and have some detail:
	a. Economic Indicators - current issue with magazines at reference desk
	b. Survey of Current Business (blue pages under "Commodity Prices")- current issue with magazines at reference desk
	c. Monthly Labor Review (data plus analysis)- P.D. Wall L2.6

5. CPI Forecasts
	a. Blue Chip Economic Indicators - notebook, investment table
	b. Statistical Forecasts of the United States - Ready Reference, R330.97300112 qS797 1993

6. Cost of living comparisons between cities -- not part of CPI
	a. ACCRA Cost of Living Index--notebook at Reference Desk--compares cost of living of U.S. metropolitan areas to U.S. average for a particular quarter (not change)

7. Purchasing Power of the Dollar
	a. Statistical Abstract of the United States - Reference Desk
		chart shows comparisons of how much dollar worth compared to base period of 1982-84, historically and recently
	b. Survey of Current Business- blue pages w/Commodity Prices. The Value of a Dollar R338.520973 qV215 1860/1989


CONSUMER PRICE INDEX--KEY CONCEPTS

1. Measures average changes in retail prices on a defined market basket of goods.

2. Categories of goods includes: food, shelter, fuels and other utilities, apparel and upkeep, transportation, medical care, entertainment

3. CPI shows the relationship of prices to a base time period, currently 1982-1984. Index figures show how much prices have changed since that time period. Per cent changes are usually from the same time the previous year.

4. Released around middle of each month for previous month.

5. Used as a:
	a. economic indicator--measures trends and helps government and citizens make economic decisions
	b. deflator--used to adjust other measurements to eliminate inflation factor (wages, sales, GDP, etc.)
	c. adjustor for wages, social security benefits, retirement payments, rents, alimony, child support, food stamps, school lunches, even our federal income tax rates

6. CPI is done for two population groups:
	a. CPI-W -- urban wage earners and clerical workers, covers around 32% of the population, includes clerical workers, sales people, crafts workers, laborers, service workers
	b. CPI-U -- all urban consumers, covers approximately 80% of the population, includes professionals, technical workers, managers, unemployed, retirees, etc. as well as wage earners and clerical workers

7. Measured in 85 cities to form U.S. city average, based on surveys done at point of purchase as well as consumer surveys

8. Indexes are published for :
	a. U.S. as a whole
	b. regions
	c. metro areas by size categories
	d. specific metropolitan areas

9. Indexes for the following metro areas are published each month:
	Chicago, Los Angeles, New York, Philadelphia, San Francisco

10. The following metro areas are published every other month beginning in January for column A, February for column B:

		A								B
	Baltimore							Dallas
	Boston							Detroit
	Cleveland							Houston
	Miami							Pittsburgh
	St. Louis
	Washington, D.C.

11. Other cities are published only as semiannual averages, including: Buffalo, Cincinnati, Denver, Honolulu, Kansas City, Milwaukee, Portland, San Diego, Seattle

12. When reporting figures based on semiannual figures, remember that per cent change is from the previous period, either the previous six-month period (ex. 2nd six months of 1992) or the same six-month period a year ago (ex. 1st six month of 1992).

13. The index has been revised several times, (see BLS Handbook of Methods for a description of these), most recently in 1987 when the base time period was fixed at 1982-84. Some patrons still want index figures based on 1967=100. These figures are usually available in most sources. Converting from one index to another is often not necessary since CPI Detailed Report includes historical charts which have been converted.

14. Limitations of CPI:
	a. does not include rural consumers
	b. does not measure differences in cost of living in different cities, only change in a particular location over time
	c. based on only a sample of goods

15. How to compute index percentage change:

Index Point Change

	CPI									112.5
	Less Previous Index						108.5
	Equals index point change	  		  	  4.0

Percent Change

	Index point difference		  		  	  4.0
	Divided by the previous index				108.5
	Equals								0.037
	Results multiplied by one hundred 	    0.037 x 100
	Equals percent change					  3.7


Prepared by Elizabeth Zuelke, Public Library of Cincinnati & Hamilton County