Consumer Price Index and Retail Price Index: the 2008 basket of goods and services
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This leaflet represents and explains the changes in CPI and RPI over the 2007 and 2008.
The easiest way to understand both CPI and RPI is to imagine a shopping “basket” containing those goods on which people typically spend their money.
CPI doesn’t show us the price of every product in particular.
As it says in the leaflet” It would be both impractical and unnecessary”.
Consumer Price Index represents the average price of typical household expenditure.
In simply words it shows us that goods and services on which household expenses is sufficiently large.
For example: school fees, petrol and gas prices, telephone charges, electricity and gas supply.
However, generally, it is necessary to create a sample of representative items. Also it explains how to select these representative items.
The representative items in 2008 were shown on table 1, also it is an additional to the basket 2008; items removed from the basket 2008.
The easiest way to understand both CPI and RPI is to imagine a shopping “basket” containing those goods on which people typically spend their money.
CPI doesn’t show us the price of every product in particular.
As it says in the leaflet” It would be both impractical and unnecessary”.
Consumer Price Index represents the average price of typical household expenditure.
In simply words it shows us that goods and services on which household expenses is sufficiently large.
For example: school fees, petrol and gas prices, telephone charges, electricity and gas supply.
However, generally, it is necessary to create a sample of representative items. Also it explains how to select these representative items.
The representative items in 2008 were shown on table 1, also it is an additional to the basket 2008; items removed from the basket 2008.
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