Working to Improve the Consumer Price Index

Abstract

In this paper, we first comment on the recent (1996) report of the Advisory Commission to Study the Consumer Price Index, appointed by the U.S. Senate Finance Committee, and the recommendations it contains. We then describe some of the initiatives currently underway at the Bureau of Labor Statistics—some of which were undertaken before the appearance of the Advisory Commission's report, others of which are part of a Consumer Price Index improvement initiative that was included as part of the President's 1998 budget proposal—which attempted to address the bias issues that were highlighted by the Advisory Commission.