Individual Stocks

Inflation and the Consumer Price Index

How is the CPI created?

The CPI is created both by real shoppers, who acquire specific goods, and by detailed interviews and price diaries kept by thousands of contracted families across the United States, detailing what they have purchased, and at what price, during a certain period of time. The basket of real products that are analyzed includes more than 200 categories of goods and services divided into eight groups: food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services. The Bureau of Labor Statistics also analyzes the prices of approximately 80,000 items in its market basket each month from thousands of retail stores, service establishments, rental units, and doctors’ offices across the country.


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