Regional Course on Consumer Price Index Compilation Methods

CPIs measure changes over time in the general level of prices of goods and services that households acquire (use or pay for) for the purpose of consumption. In many countries, they were originally introduced to provide a measure of the changes in the living costs faced by workers, so that wage increases could be related to changing levels of prices. However, over the years, CPIs have widened their scope and now are widely used as a macroeconomic indicator of inflation, as a tool by governments and central banks for monetary policy and for monitoring price stability, and as deflators in the national accounts. With the globalization of trade and production and the liberalization of the markets, national governments, central banks, and international organizations place great importance on the quality and accuracy of national CPIs, and their international comparability.