Modernizing the Consumer Price Index for the 21st Century (2022) / Chapter Skim
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Pages 21-49
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Chap ter 2 focuses on opportunities, challenges, and priorities of transactions A00858 -- Consumer Price Index REV.indd 21 8/15/22 11:54 AM
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Chapters 4 and 5 detail how new data sources, combined A00858 -- Consumer Price Index REV.indd 22 8/15/22 11:54 AM
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In the U.S. CPI, more than 100,000 items are sampled and aggregated into component 25 A00858 -- Consumer Price Index REV.indd 25 8/15/22 11:54 AM
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Some times they only include prices, sometimes they include expenditures as well, and the amount of product detail that can be gleaned varies greatly. But all of these nonsurvey data sources, along with administrative sources, contain types of information that expand opportunities to develop a richer array of price indexes.
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successfully constructed a basic item-level index for coffee using scanner data. A Conference on Re search on Income and Wealth publication on scanner data and price indexes (Feenstra and Shapiro, 2003)
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When obtained from aggregators, the transactions data cover many more retailers than do the samples used by BLS.13 Many researchers have used POS data to estimate price indexes. In a recent example, Melser (2021)
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16 The Nielsen data covered the period September 2005 to September 2010 and included totals for the quantity and dollar amount of merchandise sold by UPC, www.bls.gov/osmr/ research-papers/2013/pdf/st130070.pdf. A00858 -- Consumer Price Index REV.indd 32 8/15/22 11:54 AM
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A more complete and detailed review of the use of scanner data and web-scraped data for price measurement -- in this case focus ing on outlier detection methods used -- can be found at: www.niesr.ac.uk/sites/default/files/ publications/NIESR%20DP%20523.pdf. A00858 -- Consumer Price Index REV.indd 33 8/15/22 11:54 AM
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, representing 20 percent of the CPI Basket Weight. The agency is aiming to collect 70–80 percent of its price quotes from alternative data sources, representing 55 percent of basket weight, by March 2023.19 ABS uses scanner data from retailers to obtain prices for about 16 per cent of Australia's CPI by item weight.
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As has been the case for other countries, one important research task has been to map item classification. This research focuses on ensuring that the right products are in place for the various datasets to produce an index for specific items as defined in the ONS CPI.22 While scanner data provide a useful source of price quotes to fold into the existing production system, such data also contain information on quantities that may be used to estimate elementary price indexes directly.
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27 Similar data can also be found at www.pricestats.com/approach/data-composition. A00858 -- Consumer Price Index REV.indd 36 8/15/22 11:54 AM
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, investigating the similarity of online and offline prices using evidence from large multi-channel retailers, found that "price levels are identical about 72 percent of the time." A00858 -- Consumer Price Index REV.indd 37 8/15/22 11:54 AM
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Not knowing what scanner data 30 www.abs.gov.au/articles/web-scraping-australian-cpi. A00858 -- Consumer Price Index REV.indd 39 8/15/22 11:54 AM
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One example is the framework developed by the Statistical Office of the European Union (Eurostat, 2013) , which includes five major output quality components: relevance, accuracy and reliability, A00858 -- Consumer Price Index REV.indd 41 8/15/22 11:54 AM
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that have given NPD permission to provide the data to Census (for details, see www.nber.org/system/files/chapters/ c14270/c14270.pdf. A00858 -- Consumer Price Index REV.indd 42 8/15/22 11:54 AM
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37 The field-based labor force for the CPI program includes around 80 full-time and 425 part-time data collectors working in 75 cities in 43 states. A00858 -- Consumer Price Index REV.indd 44 8/15/22 11:54 AM
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The panel recommends that BLS develop a robust research agenda that supports incorporation of alternative data more broadly beyond just price quote replacement. This will require accelerating research evaluating the role of the leading multilateral index approaches A00858 -- Consumer Price Index REV.indd 47 8/15/22 11:54 AM
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41 As described in the appendix to this chapter, recent research has attempted to perform quality adjustment at scale, often with the use of scanner data. A00858 -- Consumer Price Index REV.indd 48 8/15/22 11:54 AM
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agencies during 2020; they also have a long-standing contract with Statistics New Zealand. A00858 -- Consumer Price Index REV.indd 49 8/15/22 11:54 AM
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