3 ms·
> What are the actual metrics they use to measure inflation? The long answer is here: https://www.bls.gov/opub/hom/cpi/home.htm https://www.bls.gov/opub/hom/cp
by em500 4y ago
> What are the actual metrics they use to measure inflation?
The long answer is here: https://www.bls.gov/opub/hom/cpi/home.htm https://www.bls.gov/opub/hom/cpi/home.htm
The short answer is, the BLS samples prices of many consumer products in various categories (some from direct observation, some from consumer surveys) and calculates a weighted average[1] of the prices. The result is the Consumer Price Index (CPI). The consumer price inflation is calculated as the percentage difference of the current CPI compared to twelve months ago.
[1] Weights: https://www.bls.gov/cpi/tables/relative-importance/home.htm https://www.bls.gov/cpi/tables/relative-importance/home.htm