? Comprehensive Presentation On Consumer Price Index (CPI) ?
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ashia? Comprehensive Presentation On Consumer Price Index (CPI) ?
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ashiaCONSUMER PRICE
INDEX
PRESENTED BY:-
ASHIA
CONTENTS
INTRODUCTION
PURPOSE AND SIGNIFICANCE
CALCULATION OF CPI
DATA COLLECTION
BASE YEAR AND INDEXING
LIMITATIONS
INFLATIONOF CPI
presentation title
INTRODUCTION
At Contoso, we empower organizations to foster
collaborative thinking to further drive workplace
innovation. By closing the loop and leveraging agile
frameworks, we help business grow organically and foster
a consumer-first mindset.
20XX
OVERVIEW OF CPI
…
5 20XX
IMPORTANCE OF CPI
• CPI is a widely used measure for determining inflation in an economy. Rising inflation
results in the diminishing standard of living for the residents of a nation. Over a period
of time, it will result in an increase in the cost of living.
• A high inflation rate will result in increase in prices of goods and as a result there will
be less manufacturing, which will result in loss of jobs.
CALCULATION OF CPI
The CPI is a product of a series of interrelated samples. First, using data from the
U.S. Census we select the urban areas from which data on prices are collected. Next,
a sample of data from the Conumer Expenditure Survey identifies the places where
households purchase various types of goods and services, forming the basis for the
CPI outlet sample. Also using data from the Consumer Expenditure Survey, BLS
statisticians assign quotes in the CPI item categories to specific outlets. A specific
item is then chosen for selection using a process which bases the probability of
selection for an item on the share the item composes within the outlet’s revenue in
that item category.
Recorded price changes are weighted by the importance of the item in the spending
patterns of the appropriate population group. The combination of carefully selected
geographic areas, retail establishments, commodities and services, and associated
weight, gives a weighted measurement of price change for all items in all outlets, in
all areas priced for the CPI.
FAULTY SELECTION OF
LIMITATION OF CPI:- REPRESENTATIVE
COMMODITIES RESULTING
OUT OF UNSCIENTIFIC
FAMILY BUDGET
ENQUIRIES.
ERRORS MAY OCCUR IN
THE CONSTRUCTION
INADEQUATE AND
UNREPRESENTATIVE
NATURE OF PRICE
QUOTATIONS AND USE OF
INACCURATE WEIGHTS.
FREQUENT CHANGES IN
DEMAND AND PRICES OF REPRESENTATION OF
THE COMMODITY. THE NOVELTY
AVERAGE FAMILY MIGHT
NOT BE ALWAYS A
REPRESENTATIVE ONE.
20XX
CONCLUSION:-
At Contoso, we believe in giving 110%. By
using our next-generation data architecture, we
help organizations virtually manage
agile workflows. We thrive because of our
market knowledge and great team behind our
product. As our CEO says, "Efficiencies will
come from proactively transforming how we
do business."
THANK YOU
REGARDS
ASHIA
