This document is a macro analysis report from the Undergraduate Economics Association discussing the Consumer Price Index (CPI). It defines the CPI as a monthly measure of price changes for consumer goods and services produced by the Bureau of Labor Statistics. The CPI tracks two population groups and weights items based on spending from the Consumer Expenditure Survey. It is used as an economic indicator, to adjust other economic data for inflation, and in income and wage negotiations.

1. Macro Analysis Group (Week 4)
By: Jeevan Parameswaran, Spencer Pettiti (VPs of Editorial
Content)
Undergraduate Economics
Association

2. Undergraduate Economics
Association

3. Undergraduate Economics
Association

4. Undergraduate Economics
Association

5. CPI
Stock Definition:
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“Produces monthly data on changes in the prices paid by
urban consumers for a representative basket of goods and
services”
BLS News Release
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Can be considered a quasi cost-of-living measure
• 2 population groups:
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CPI-U (All Urban Consumers,
87%)
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CPI-W (Urban Wage Earners
and Clerical Workers, 32%)
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Data is weighted based on
relevance (Consumer
Expenditure Survey)
• Usage:
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Economic Indicator (policy
efficacy)
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Deflator (for adjusting
economic data)
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Income / wage bargaining
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Undergraduate Economics
80 Million tied
5
Association
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27 Million school lunches

6. Undergraduate Economics
Association

7. Undergraduate Economics
Association

8. Undergraduate Economics
Association

9. Undergraduate Economics
Association

10. Undergraduate Economics
Association