This is an inaccurate estimation of inflation, but it has been used for years. Is there a better solution?
2007-02-03 12:58:07 · 2 answers · asked by mellijenk 3 in Social Science ➔ Economics
The Bureau of Labor Statistics frequently revises the measurement method trying to improve it's accuracy. There are 2 values given the CPI and the GNP deflator and the right number is between the them, but it depends on who the measurement applies to and what is their market basket of goods. One problem is the rapid increase in the cost of medical care compared with other goods, so it is dependent on how much medical care is in the basket. The most important use is for social security cost of living increases, which has been going up faster the average wages that are subject to social security taxes. But this is a group that spends a lot on medical care.
2007-02-03 20:15:02 · answer #1 · answered by meg 7 · 1⤊ 0⤋
It's easier than counting on your fingers.
No, seriously, the Consumer Price Indexes (CPI) program produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services.
I guess this information is useful to somebody.
2007-02-03 22:42:56 · answer #2 · answered by ? 6 · 0⤊ 0⤋