How to calculate consumer price index

The index of consumer prices – one of the ways to measure the average level of prices, which is calculated for a variety of goods and services and, according to some researchers, is the best indicator of cost of living.

Instruction

1. The index of consumer prices, calculates the change of prices of goods and services included in the consumer basket. In Russia, the consumer basket was approved on 31 March 2006 Federal law No. 44-FZ "On consumer basket in the Russian Federation". It includes three groups of products and services:
   • Food (grain products, potatoes, vegetables, etc.)
   • Non-food goods (clothes, medicines, household goods, etc.);
   • Facilities (utilities, transportation, etc.).
2. To calculate the index of consumer prices alone, you need a full list of the included in the basket of goods and services, their pricesand the base year and the current market value. Formula index of consumer prices as follows: CPI = ? (C(t) ? T(b)) / ? (C(b) ? T(b)),where C(t) and p(b) – the level of prices, respectively, of the current and base years for the products and services of the consumer basket;
   T(b) – list of goods and services in the consumer basket. To calculate inflation, the fraction is multiplied by 100 about thepricestov.
3. Similarly, we can calculate the index of consumer prices and inflation based on its own consumption basket. To do this make a complete range of products and services that are necessary for you and you always use. Write down their current pricess. For personal use you can calculate the index of consumer prices on a monthly basis. Some people described method to calculate the so-called real inflation, which typically does not coincide with the rate of inflation, officially approved. However, nothing surprising in this. It has long been observed that inflation is always higher in the group of inexpensive items which is the majority of the population.