One form of the CPI that has been advocated by lobbying groups is a “CPI for the elderly.” The Bureau of Labor Statistics currently produces only indexes for “all urban households” and “urban wage earners and clerical workers.” Should the BLS produce such an index for the elderly?
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The CPI calculates the weighted average of a basket of consumer products and services. In the equation for measuring the change in the price of products in a fixed basket, the price changes for each item in the basket are added together and then combined. When the CPI changes, these changes are used to measure the degree to which the price of goods and services has increased due to increasing living costs. One of the most commonly used inflation or deflation figures is the CPI.
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