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A Study about the Consumer Price Index(CPI) Bias

Zhao Wen-y

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Abstract

The CPI is a very important macroeconomic indicator.Because of the presence of CPI bias,the consumer price index does not reflect the real level of inflation,and largely affects the accuracy of the national macro-control,so that people make misinterpreting and suspicion about the actual economic situation.This paper analyzes the existence of CPI bias and the types of CPI bias from the view of economics and the theoretical framework of CPI,and makes recommendations for the CPI preparation improvement.

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What this paper is about

The CPI is a very important macroeconomic indicator.Because of the presence of CPI bias,the consumer price index does not reflect the real level of inflation,and largely affects the accuracy of the national macro-control,so that people make misinterpreting and suspicion about the actual economic situation.This paper analyzes the existence of CPI bias and the types of CPI bias from the view of economics and the theoretical framework of CPI,and makes recommendations for the CPI preparation improvement.

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Available abstract

The CPI is a very important macroeconomic indicator.Because of the presence of CPI bias,the consumer price index does not reflect the real level of inflation,and largely affects the accuracy of the national macro-control,so that people make misinterpreting and suspicion about the actual economic situation.This paper analyzes the existence of CPI bias and the types of CPI bias from the view of economics and the theoretical framework of CPI,and makes recommendations for the CPI preparation improvement.

Key concepts: Economics, Inflation (cosmology), Consumer price index (South Africa), Macro, Index (typography), Price index, Econometrics, Wholesale price index

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