Modernizing the Consumer Price Index for the 21st Century (2022) / Chapter Skim
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1 Introduction
1 Introduction
Pages 12-20
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From page 12... ...
-- along with other statistical agencies that collect key economic data, such as the Department of Agriculture -- is needed to advance the acquisition and use of alternative data sources in the production of economic statistics. More specifically, such coordination will allow the statistical system to negotiate common, unified, comprehensive contracts with companies that collect ap plicable data.
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From page 13... ...
This includes advance notice of changes in an easy to find location on its website, detail about alternative data sources incorporated, transparency around experimental indexes, and updates on the timelines of projects as they evolve. A00858 -- Consumer Price Index REV.indd 13 8/15/22 11:54 AM
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From page 14... ...
A00858 -- Consumer Price Index REV.indd 14 8/15/22 11:54 AM
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From page 15... ...
for more than 100 years is the most widely used measure of consumer price changes. As a key economic indicator, the CPI measures the average change in the prices paid by households for a market basket of goods and services.
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From page 16... ...
Rather, this report is about modernizing the price measurement data infrastructure within the context of this accepted framework. New data sources carry the potential to increase accuracy, detail, and timeliness (pos sibly reduce costs)
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From page 17... ...
Fortunately, at the same time, the digital revolution of recent decades has given rise to vast new alternative data sources that can be leveraged for the purpose of tracking consumer prices. These new data sources have the potential to improve the accuracy, coverage, and timeliness of the CPI.
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From page 18... ...
These methods of price sampling and establishing consumer expenditure shares were more appropriate and more effective in the 20th century than they are now. T oday, and even more so 5 to 10 years down the road, BLS will need to take advantage of alternative data sources for the CPI to keep up with measurement demands and to remain relevant.
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From page 19... ...
BLS suspended in-person collection in March 2020, leading to a rapid shift to online and telephone collection; this shift in data collection modes is illus trated in Figure 1-3. While alternative data sources will be useful for many aspects of the CPI, it also is important to acknowledge that it will be difficult to move away fully any time soon from systematic nationwide surveys that track consumer expenditure patterns.
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From page 20... ...
SOURCE: Panel-generated, using data from BEA and BLS. FIGURE FIGURE1-3 1-3 Shifts Shiftsin in pandemic pandemiceconomy data data economy collection modesmodes collection for the for commodities and the commodi services ties andprice survey.
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