In order to keep the Consumer Prices Index (CPI) representative of consumer spending patterns, the items that are priced in compiling the CPI are kept under review. This article explains this review process and, in particular, how and why the items are chosen. It also lists the basket of items priced in 2003.
The most useful way to think about the CPI is to imagine a ‘shopping basket’ full of goods and services on which people typically spend their money. We review the basket each year to keep it as up -to date as possible, and to reflect changes in buying patterns and the estab-lishment of new products. Items are dropped from the basket when they become more difficult to find in the shops or no longer typical of what most people spend their money on.
Published in web format: 16 December 2003 at 9:30 am
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