Cpi Cpi
How does the shipment of a product such as the ipod touch affect consumer price index (CPI)?
I would like to know how the shipment of a product would affect the CPI and what the reasons are.
It makes computing an accurate CPI much harder. If people bought exactly the same goods in the same quantities year after year, then computing the CPI would be easy.
But when quality changes at the same time price does, or when people buy a new product instead of an old one, then making the old and new index mean the same is very tricky.
Note the last paragraph here:
http://theglobalmarkets.com/trading%20guide/cpi.html
And the 4th source of bias here:
http://en.wikipedia.org/wiki/Boskin_Commission
http://en.wikipedia.org/wiki/Quality_bias
http://en.wikipedia.org/wiki/Cost_of_living_index
http://faculty-web.at.northwestern.edu/economics/gordon/P376_IPM_Final_060313.pdf
http://medicine.jrank.org/pages/352/Consumer-Price-Index-Colas.html
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