IDEAS home Printed from https://ideas.repec.org/a/ags/remaae/10334.html
   My bibliography  Save this article

The C.P.I.: A Simple Explanation and Some Words of Warning

Author

Listed:
  • Longworth, John W.
  • Bos, Ted

Abstract

Indexation of wages, pensions and tax scales to allow for inflation requires a reliable measure of the rate of inflation. In Australia the Consumer Price Index (C.P.I.) has been the basis of all official indexation. This paper examines both theoretical and practical problems involved in constructing a C.P.I. and the Australian C.P.I. in particular. Alternative indices of the rate of inflation such as a Wholesale Price Index and an Implicit Price Deflator, are also discussed.

Suggested Citation

  • Longworth, John W. & Bos, Ted, 1978. "The C.P.I.: A Simple Explanation and Some Words of Warning," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 46(01), pages 1-16, April.
    • Handle: RePEc:ags:remaae:10334
    DOI: 10.22004/ag.econ.10334
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/10334/files/46010021.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.10334?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Galatin, Malcolm, 1973. "A True Price Index When the Consumer Saves," American Economic Review, American Economic Association, vol. 63(1), pages 185-194, March.
    2. Lazare Teper, 1956. "BLS Consumers' Price Index and the AMS Index of Prices Paid by Farmers for Family Living—A Juxtaposition," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 38(2), pages 378-390.
    3. Laura Mae Webb, 1956. "Discussion: The Need for an Expanded Price Research Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 38(2), pages 390-394.
    4. Irving H. Siegel, 1956. "What Concepts Are Appropriate to Consumer Price Indexes?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 38(2), pages 361-368.
    5. J. R. Hicks, 1942. "Consumers' Surplus and Index-Numbers," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 9(2), pages 126-137.
    6. Pollak, Robert A, 1975. "Subindexes in the Cost of Living Index," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 16(1), pages 135-150, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Blisard, William Noel & Blaylock, James R., 1990. "Construction of·True Cost of Food Indexes From Estimated Engel Curves," 1990 Annual meeting, August 5-8, Vancouver, Canada 270916, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Alain Béraud, 2010. "Le Traité d'économie pure, la contribution fondatrice," Post-Print halshs-00487939, HAL.
    3. Erwin Diewert & Valentin Zelenyuk, 2025. "On the problem of the purchasing power of money by A. A. Konüs and S. S. Byushgens: translation and commentary," Journal of Productivity Analysis, Springer, vol. 63(2), pages 107-132, April.
    4. Keir G. Armstrong, 2004. "A Graphical Depiction of Hicksian Partial-Equilibrium Welfare Analysis," Carleton Economic Papers 04-09, Carleton University, Department of Economics.
    5. Sinden, Jack A., 1978. "Estimation Of Consumer'S Surplus Values For Land Policies," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 22(2-3), pages 1-19, August.
    6. Miroslav Svoboda, 2008. "History and troubles of consumer surplus," Prague Economic Papers, Prague University of Economics and Business, vol. 2008(3), pages 230-242.
    7. Richard Batley & Thijs Dekker, 2019. "The Intuition Behind Income Effects of Price Changes in Discrete Choice Models, and a Simple Method for Measuring the Compensating Variation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(1), pages 337-366, September.
    8. Fulginiti, Lilyan E. & Perrin, Richard K., 1994. "Interventions And Production Sector Waste In Ldc Agriculture," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(2), pages 1-10, December.
    9. Erik Brynjolfsson & Yu (Jeffrey) Hu & Michael D. Smith, 2003. "Consumer Surplus in the Digital Economy: Estimating the Value of Increased Product Variety at Online Booksellers," Management Science, INFORMS, vol. 49(11), pages 1580-1596, November.
    10. Bosmans, Kristof & Decancq, Koen & Ooghe, Erwin, 2018. "Who's afraid of aggregating money metrics?," Theoretical Economics, Econometric Society, vol. 13(2), May.
    11. Delphine Irac, 2008. "Access to new imported varieties and total factor productivity: Firm level evidence from France," Working papers 204, Banque de France.
    12. Cheng, Xiang & Wang, Wenfu & Chen, Xueli & Zhang, Wei & Song, Malin, 2024. "Carbon tariffs and energy subsidies: Synergy or antagonism?," Energy, Elsevier, vol. 306(C).
    13. Abdelkrim Araar & Paolo Verme, 2019. "Prices and Welfare," Springer Books, Springer, number 978-3-030-17423-1, March.
    14. Stephen Martin, 2019. "The Kaldor–Hicks Potential Compensation Principle and the Constant Marginal Utility of Income," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 55(3), pages 493-513, November.
    15. Decerf,Benoit Marie A, 2024. "Multidimensional Well-Being Measurement Practices : A Review Focused on Improving Global Multidimensional Poverty Indicators," Policy Research Working Paper Series 10800, The World Bank.
    16. Erik Brynjolfsson & Avinash Collis & W. Erwin Diewert & Felix Eggers & Kevin J. Fox, 2020. "Measuring the Impact of Free Goods on Real Household Consumption," AEA Papers and Proceedings, American Economic Association, vol. 110, pages 25-30, May.
    17. Hellström, Jörgen & Nordström, Jonas, 2012. "Demand and welfare effects in recreational travel models: Accounting for substitution between number of trips and days to stay," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(3), pages 446-456.
    18. Haizhen Mou & Stanley L. Winer, 2010. "Fiscal Incidence When Both Individual Welfare and Family Structure Matter: The Case of Subsidization of Home -care for the Elderly," ICER Working Papers 15-2010, ICER - International Centre for Economic Research.
    19. Diewert, W. E. & Fox, Kevin J., 1998. "The measurement of inflation after tax reform," Economics Letters, Elsevier, vol. 61(3), pages 279-284, December.
    20. Dale O. Stahl II, 1984. "Cardinal vs. Characteristic Indices of Preference for Applied Welfare Economics," Public Finance Review, , vol. 12(4), pages 473-486, October.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:remaae:10334. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.