|
The Consumers Price Index (CPI) is used to measure the changes in the prices of goods and services purchased by New Zealand households over a period of time.
This change in prices is sometimes called inflation. Supermarkets, clothing stores, department stores, liquor outlets, doctors' surgeries, travel agents, service stations and other providers of goods and services help supply Statistics New Zealand with the information to calculate the CPI.
Where possible, prices are collected for exactly the same goods and services each time. This ensures that changes in the cost of goods and services over time are not due to changes in the quantity or quality of the goods and services purchased. These changes are called 'pure' price changes.
Sometimes there is a change in the quantity and quality of the goods but the prices remain the same, eg the packaging of a particular brand of chocolate biscuit changes and the number of biscuits in the packet is reduced but the price remains the same. This is, in effect, a price increase and adjustments are made to record a price increase in the CPI.
Other CPI pages in Schools Corner
How is the Consumers Price Index organised information
Calculating changes in the CPI information
What's in the basket of goods information
Why are prices weighted information
The CPI revision information
Other price indexes information
Consumers Price Index activity
|