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Tuesday, February 7, 2023

Inflation Index Calculation Basics — Brian Romanchuk

There are three main steps needed to calculate a consumer price index.
  • Determine weightings based on consumption.
  • Go out and measure prices in the economy.
  • Aggregate the measured prices into sub-indices which are in turn aggregated into an overall price index.
Statistical issues ensue.

Bond Economics
Inflation Index Calculation Basics
Brian Romanchuk

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