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NAEP Reporting Practices Investigating District-Level and Market-Basket Reporting (2001) / Chapter Skim
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Appendix A: Background and Current Uses of the Consumer Price Index
Pages 119-124

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From page 119...
... The CPI is used to adjust payments to Social Security recipients ancl to Fecleral ancl military retirees, ancl for a number of entitlement programs such as food stamps ancl school lunches. Also, individual income tax brackets en cl personal exemptions are adjusted for inflation using the CPI.
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From page 120...
... In the quarterly interview portion of the CE survey, an interviewer visits every consumer in the sample every 3 months over a 12-month period. The CE interview survey is designed to collect data on the types of expenditures that respondents can be expected to recall for a period of 3 months or longer.
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From page 121...
... In the diary component of the CE survey, consumers are asked to maintain a complete record of expenses for two consecutive one-week periods. The CE diary survey was designed to obtain detailed data on frequently purchased small items, including food and beverages (both at home and in eating places)
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From page 122...
... Using the information supplied by families in the CE surveys, the BLS constructs the CPI market basket by partitioning the set of all consumer goods and services into a hierarchy of increasingly detailed categories, referred to as the CPI item structure.2 The levels of the CPI classification are: All items · Major groups · Intermediate aggregates · Expenditure classes · Item strata (or categories) · Entry level items For example, in developing the current market basket the BLS has classified expenditures reported in the 1993-95 CE survey into more than 2 Much of the material in this section and the next section is excerpted from CPI materials available at the Bureau of Labor Statistics web site, ht~p://www.bls.gov.
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From page 123...
... This selection is made using a random probability sampling method that reflects an item's relative share of sales at that particular store. Each month, BLS data collectors, called economic assistants, visit or call thousands of retail stores, service establishments, rental units, and doctors' offices throughout the United States to obtain price information on the thousands of items used to track and measure price change in the CPI.
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From page 124...
... In response to growing demands for a more current CPI market basket, the BLS has redesigned some of the survey processes to enable more frequent revision than once every five or ten years. In particular, the new TPOPS sample design permits a shift to sample rotation by category rather than by geographic area, thereby facilitating accelerated sample rotation in product areas where the markets are most dynamic.
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Key Terms

  • cpi market
  • geographic sample
  • expenditure weights
  • urban consumers
  • consumer expenditure

  • labor statistics
  • item structure
  • interview survey
  • cpi geographic
  • sample rotation

  • item category
  • monthly cpi
  • housing units
  • bls field
  • unique products

  • diary survey
  • constructed using
  • retail stores
  • primary sampling
  • diary components

  • sampling involves
  • household characteristics
  • sampling process
  • diary component
  • expenditure survey

  • diary surveys
  • cpi item
  • detailed data
  • total household
  • census data


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