The CPI is calculated and posted quarterly by the Australian Bureau of Statistics.[3] Historical figures are available at the Reserve Bank of Australia website.[4]
In Belgium, wages, pensions, house rent, insurance premiums, unemployment benefits, health insurance payments, etc. are by law tied to a consumer price index.
Canada
CPI All-Item Basket in Canada from 1980 to 2021. Source: Statistics Canada
Canada's CPI is published by Statistics Canada. The index is calculated and published monthly. It is used to escalate a given dollar value, over time, to preserve the purchasing power of that value. Thus, the CPI is widely used to adjust contracted payments, such as wages, rents, leases and child or spousal support allowances. Private and public pension programs (Old Age Security and the Canada Pension Plan), personal income tax deductions, and some government social payments are also escalated using the CPI. It is also used to set and monitor the implementation of economic policy. The Bank of Canada, for example, uses the CPI, and special aggregates of the CPI, to monitor its monetary policies.
Chile
Chile's CPI is published by the Instituto Nacional de Estadística de Chile.[5]
China
China's CPI is published by National Bureau of Statistics of China.[6]
Hong Kong
Hong Kong's CPI is published by the Census and Statistics Department.[7]
Colombia
The IPC, which stands for Indice de Precios al Consumidor (Consumer Price Index), is calculated and published on a monthly basis by Banco de la República de Colombia, the National Central Bank.[8]
The European Central Bank publishes the Harmonized Index of Consumer Prices (HICP). It is a weighted average of price indices of member states. It is a seasonally adjusted chained index in which goods are split by final consumption.
Finland
The index (kuluttajahintaindeksi) is calculated and published by Statistics Finland[10] Finnish food prices have been increasing almost fastest in European Union. In the current year, consumer prices for food are forecast to increase by 4.5 per cent on average.[11] Most shopping centers have expensive underground car parking places that are often in practice free of charge. The high construction prices are included in the price of food and goods. The two biggest food retailers Kesko and S-Market (HOK Elanto) cover over 80% of the markets. Most often the town planning has ignored to plan new independent small shops. Satu Hassi (Green) has made a questionary for the EU Commission of the retail industry.
The index is calculated and published by the Hellenic Statistical Authority, by using a variation of the Laspeures index.[14] Until 2000, the index used to take into consideration only urban areas.[15]
Wholesale Price Index (WPI) WPI first published in 1902, and was one of the more economic indicators available to policy makers until it was replaced by most developed countries by the Consumer Price Index in the 1970s. WPI is the index that is used to measure the change in the average price level of goods traded in wholesale market. In India, a total of 697 commodities data on price level is tracked through WPI which is an indicator of movement in prices of commodities in all trade and transactions. It is also the price index which is available on a weekly basis with the shortest possible time lag only two weeks.[17] Base year to calculate WPI is 2011-2012=100
Consumer Price Index (CPI) in India comprises multiple series classified based on different economic groups. There are four series, viz the CPI UNME (Urban Non-Manual Employee), CPI AL (Agricultural Labourer), CPI RL (Rural Labourer) and CPI IW (Industrial Worker). While the CPI UNME series is published by the Central Statistical Organisation, the others are published by the Department of Labour. From February 2011 the CPI (UNME) released by CSO is replaced as CPI (urban),CPI (rural) and CPI (combined).[18] Consumer Price Index is used in calculation of Dearness Allowance[19] which forms an integral part of salary of a Government Employee.Base year to calculate CPI is 2012=100.
Indonesia
Indeks Harga Konsumen (IHK) is calculated and published by Badan Pusat Statistik (BPS).[20]
Israeli's Central Bureau of Statistics publishes a series of consumer and other (manufacturing, agricultural, housing, etc.) price indices every month.[23] Both current and historical data[24] are available on their web site[permanent dead link], which also includes a convenient calculator that allows visitors to enter starting and ending dates and retrieve the monthly data in HTML or Microsoft Excelspreadsheet format.
Italy
Italy's CPI is published by the Istat, the Italian national statistical institute.[25] Historical data and chart about inflation in Italy
Malaysia
Malaysia's CPI is computed and published by the Department of Statistics Malaysia on monthly basis.[26]
Mexico
The INPC, which stands for Indice Nacional de Precios al Consumidor (Consumer Price Index in English), is calculated and published every two weeks or on a monthly basis by the National Institute on Statistics and Geography (INEGI). Until July 15, 2011, the INPC was published by Banco de México, the Central Bank.[27]
The CPI of New Zealand is calculated and published quarterly by Statistics New Zealand from prices gathered in a range of surveys at 15 urban areas.[29]
The traditional measure of inflation in the UK for many years was the Retail Prices Index (the RPI), which was first calculated in the early 20th century to evaluate the extent to which workers were affected by price changes during the first world war. An explicit inflation target was first set in October 1992 by then-Chancellor of the Exchequer Norman Lamont following the departure of the UK from the Exchange Rate Mechanism. Initially, the target was based on the RPIX, which is the RPI calculated excluding mortgage interest payments. This was felt to be a better measure of the effectiveness of macroeconomic policy. It was argued that if interest rates are used to curb inflation, then including mortgage payments in the inflation measure would be misleading. Until 1997, interest rates were set by the Treasury.
On winning power in May 1997, the New Labour government handed control over interest rates to the Bank of England, whose Monetary Policy Committee now sets rates on the basis of an inflation target set by the Chancellor.[37] If in any month inflation is more than one percentage point off its target, the Governor of the Bank of England is required to write to the Chancellor explaining why. Mervyn King became the first Governor to do so in April 2007, when inflation ran at 3.1% against a target 2%.[38]
Since 1996 the United Kingdom has also tracked a Consumer Price Index (CPI) figure, and in December 2003 its inflation target was changed to one based on the CPI[39] normally set at 2%.[40] Both the CPI and the RPI are published monthly by the Office for National Statistics. Some rates are linked to the CPI, others to the RPI. For example, rail fare increases are usually linked to the RPI;[41] government index-linked National Savings Certificates were originally linked to the RPI, then changed to the lower CPI (and ultimately discontinued).[42]
The CPI-U includes expenditures by all urban consumers. The CPI-W includes expenditures by consumer units with clerical workers, sales workers, craft workers, operative, service workers, or laborers. The Chained Consumer Price Index C-CPI-U, a chained index, has been introduced. The C-CPI-U tries to mitigate the substitution bias that is encountered in CPI-W and CPI-U by employing a Tornqvist formula and utilizing expenditure data in adjacent time periods in order to reflect the effect of any substitution that consumers make across item categories in response to changes in relative prices. The new measure, called a "superlative" index, is designed to be a closer approximation to a "cost-of-living" index than the other measures. The use of expenditure data for both a base period and the current period in order to average price change across item categories distinguishes the C-CPI-U from the existing CPI measures, which use only a single expenditure base period to compute the price change over time. In 1999, the BLS introduced a geometric mean estimator for averaging prices within most of the index's item categories in order to approximate the effect of consumers' responses to changes in relative prices within these item categories. The geometric mean estimator is used in the C-CPI-U in the same item categories in which it is now used in the CPI-U and CPI-W.
The CPI has powerful political ramifications, and administrations of both parties have been tempted to change the basis for its calculation. Especially since 1980, the definition of CPI has been altered repeatedly, though economists disagree whether the index underestimates or overestimates the true rate of decline in purchasing power.[43][44]
Major research in progress
Continuing research on technical improvements in the calculation of the CPI.
Continuing work on the next major weight revision of the CPI.
In 1996, the Boskin Commission found the CPI to be a biased measure, and gave a quantitative analysis of the bias. The Boskin critique helped to spur some changes in the U.S. CPI, although it was partially disputed by the BLS. Many of the changes were aimed at moving the CPI to a cost of living model which takes consumer substitutions into account and typically reduces the reported level of inflation.
As of July 2008 the official CPI as set by the Reserve Bank of Zimbabwe is 35. This is up from a low of 30 in 1990 and an increase of about 3.5% over the figure for January 2008.[46]
Related Research Articles
In economics, inflation is a general increase in the prices of goods and services in an economy. This is usually measured using the consumer price index (CPI). When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money. The opposite of CPI inflation is deflation, a decrease in the general price level of goods and services. The common measure of inflation is the inflation rate, the annualized percentage change in a general price index. As prices faced by households do not all increase at the same rate, the consumer price index (CPI) is often used for this purpose.
A consumer price index (CPI) is a price index, the price of a weighted average market basket of consumer goods and services purchased by households. Changes in measured CPI track changes in prices over time. The CPI is calculated by using a representative basket of goods and services. The basket is updated periodically to reflect changes in consumer spending habits. The prices of the goods and services in the basket are collected monthly from a sample of retail and service establishments. The prices are then adjusted for changes in quality or features. Changes in the CPI can be used to track inflation over time and to compare inflation rates between different countries. The CPI is not a perfect measure of inflation or the cost of living, but it is a useful tool for tracking these economic indicators.
In economics, the GDP deflator is a measure of the money price of all new, domestically produced, final goods and services in an economy in a year relative to the real value of them. It can be used as a measure of the value of money. GDP stands for gross domestic product, the total monetary value of all final goods and services produced within the territory of a country over a particular period of time.
The Wholesale Price Index (WPI) is the price of a representative basket of wholesale goods. Some countries use WPI changes as a central measure of inflation. But now India has adopted new CPI to measure inflation. However, United States now report a producer price index instead.
A market basket or commodity bundle is a fixed list of items, in given proportions. Its most common use is to track the progress of inflation in an economy or specific market. That is, to measure the changes in the value of money over time. A market basket is also used with the theory of purchasing price parity to measure the value of money in different places.
A producer price index (PPI) is a price index that measures the average changes in prices received by domestic producers for their output. Formerly known as the wholesale price index between 1902 and 1978, the index is made up of over 16,000 establishments providing approximately 64,000 price quotations that the U.S. Bureau of Labor Statistics (BLS) compiles each month to represent thousands of different goods and services.
In economics, nominalvalue refers to value measured in terms of absolute money amounts, whereas real value is considered and measured against the actual goods or services for which it can be exchanged at a given time. Real value takes into account inflation and the value of an asset in relation to its purchasing power.
The PCE price index (PePP), also referred to as the PCE deflator, PCE price deflator, or the Implicit Price Deflator for Personal Consumption Expenditures by the Bureau of Economic Analysis (BEA) and as the Chain-type Price Index for Personal Consumption Expenditures (CTPIPCE) by the Federal Open Market Committee (FOMC), is a United States-wide indicator of the average increase in prices for all domestic personal consumption. It is benchmarked to a base of 2012 = 100. Using a variety of data including U.S. Consumer Price Index and Producer Price Index prices, it is derived from the largest component of the GDP in the BEA's National Income and Product Accounts, personal consumption expenditures.
A price index is a normalized average of price relatives for a given class of goods or services in a given region, during a given interval of time. It is a statistic designed to help to compare how these price relatives, taken as a whole, differ between time periods or geographical locations.
The Producer Price Index (PPI) is the official measure of producer prices in the economy of the United States. It measures average changes in prices received by domestic producers for their output. The PPI was known as the Wholesale Price Index, or WPI, up to 1978. It is published by the Bureau of Labor Statistics and is one of the oldest economic time series compiled by the Federal government of the United States.
In the United Kingdom, the Retail Prices Index or Retail Price Index (RPI) is a measure of inflation published monthly by the Office for National Statistics. It measures the change in the cost of a representative sample of retail goods and services.
The Harmonised Index of Consumer Prices (HICP) is an indicator of inflation and price stability for the European Central Bank (ECB). It is a consumer price index which is compiled according to a methodology that has been harmonised across EU countries. The euro area HICP is a weighted average of price indices of member states who have adopted the euro. The primary goal of the ECB is to maintain price stability, defined as keeping the year on year increase HICP target on 2% over the medium term. In order to do that, the ECB can control the short-term interest rate through Eonia, the European overnight index average, which affects market expectations. The HICP is also used to assess the convergence criteria on inflation which countries must fulfill in order to adopt the euro. In the United Kingdom, the HICP is called the CPI and is used to set the inflation target of the Bank of England.
Core inflation represents the long run trend in the price level. In measuring long run inflation, transitory price changes should be excluded. One way of accomplishing this is by excluding items frequently subject to volatile prices, like food and energy.
The United States Consumer Price Index (CPI) is a family of various consumer price indices published monthly by the United States Bureau of Labor Statistics (BLS). The most commonly used indices are the CPI-U and the CPI-W, though many alternative versions exist for different uses. For example, the CPI-U is the most popularly cited measure of consumer inflation in the United States, while the CPI-W is used to index Social Security benefit payments.
A house price index (HPI) measures the price changes of residential housing as a percentage change from some specific start date. Methodologies commonly used to calculate an HPI are hedonic regression (HR), simple moving average (SMA), and repeat-sales regression (RSR).
RPIX is a measure of inflation in the United Kingdom, equivalent to the all items Retail Price Index (RPI) excluding mortgage interest payments.
The Consumer Price Index (CPI) is the official measure of inflation in consumer prices in the United Kingdom. It is also called the Harmonised Index of Consumer Prices (HICP).
In economics, the Törnqvist index is a price or quantity index. In practice, Törnqvist index values are calculated for consecutive periods, then these are strung together, or "chained". Thus, the core calculation does not refer to a single base year.
A hedonic index is any price index which uses information from hedonic regression, which describes how product price could be explained by the product's characteristics. Hedonic price indexes have proved to be very useful when applied to calculate price indices for information and communication products and housing, because they can successfully mitigate problems such as those that arise from there being new goods to consider and from rapid changes of quality.
Inflation rate in India was 4.83% as of April 2024, as per the Indian Ministry of Statistics and Programme Implementation. This represents a modest reduction from the previous figure of 5.69% for December 2023. CPI for the months of January, February and March 2024 are 5.10, 5.09 and 4.85 respectively. Inflation rates in India are usually quoted as changes in the Consumer Price Index (CPI), for all commodities.
↑ The CPI database viewerArchived 14 August 2012 at the Wayback Machine allows queries back to September, 1951. Some other data extends back as far as 1949. The CBS began operation in 1948, several months after the founding of the state of Israel. "About the CBS". Archived from the original on 13 August 2012. Retrieved 17 August 2012.
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