Their best estimate was 1.1 percentage points, as shown in Table 20.2 “Estimates of Bias in the Consumer Price Index”. Since then, the Bureau of Labor Statistics has made a number of changes to correc...Their best estimate was 1.1 percentage points, as shown in Table 20.2 “Estimates of Bias in the Consumer Price Index”. Since then, the Bureau of Labor Statistics has made a number of changes to correct for these sources of bias and since August 2002 has reported a new consumer price index called the Chained Consumer Price Index for all Urban Consumers (C-CPU-U) that attempts to provide a closer approximation to a “cost-of-living” index by utilizing expenditure data that reflect the substitution…
Inflation is an increase in the average level of prices, and deflation is a decrease in the average level of prices. In an economy experiencing inflation, most prices are likely to be rising, whereas ...Inflation is an increase in the average level of prices, and deflation is a decrease in the average level of prices. In an economy experiencing inflation, most prices are likely to be rising, whereas in an economy experiencing deflation, most prices are likely to be falling.
