Weekly versus Monthly Unit Value Price Indexes
9 Pages Posted: 22 Jul 2015
Date Written: July 17, 2015
A previously overlooked source of potential bias in the Consumer Price Index (CPI) is described. We find that unit value (average) prices, commonly used for construction of the CPI should be constructed over the same period as the index to be constructed, rather than over an incomplete sub-period. The latter approach can lead to an upward bias in the CPI.
Keywords: Elementary price indexes, aggregation, inflation
JEL Classification: C43, C82, E31
Suggested Citation: Suggested Citation