Why are prices weighted information

Prices are weighted according to their importance in the basket of goods and services that is used for the Consumers Price Index (CPI). The weights for the CPI come from the Household Economic Survey.

The CPI was re-weighted in September 2002 as part of the revision. The CPI continues to be expressed on the base of the June 1999 quarter (=1000).

Source: Consumers Price Index - September 2002 quarter

The CPI population weights are used to find regional average prices. This ensures that the price movements in, for example, the Auckland urban area have a greater effect on the CPI than those in Timaru, a much smaller urban area.

Source: Consumers Price Index - September 2002 quarter

Related links

The Consumers Price Index introduction
Consumers Price Index - information releases
Statistics and information about Consumer Spending