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There are three main steps needed to calculate a consumer price index.Determine weightings based on consumption.Go out and measure prices in the economy.Aggregate the measured prices into sub-indices which are in turn aggregated into an overall price index.Statistical issues ensue. Bond EconomicsInflation Index Calculation BasicsBrian Romanchuk
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There are three main steps needed to calculate a consumer price index.Determine weightings based on consumption.Go out and measure prices in the economy.Aggregate the measured prices into sub-indices which are in turn aggregated into an overall price index.Statistical issues ensue. Bond EconomicsInflation Index Calculation BasicsBrian Romanchuk
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Mike Norman considers the following as important:
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There are three main steps needed to calculate a consumer price index.
- Determine weightings based on consumption.
- Go out and measure prices in the economy.
- Aggregate the measured prices into sub-indices which are in turn aggregated into an overall price index.
Statistical issues ensue.