The price index it's a index number, a statistical measure that is calculated on the prices of mass consumer products in a given period. It is worth noting that the one that is used the most is Consumer price index, which specifically measures the evolution of spending by a typical family.
The consumer price index, abbreviated through the acronym CPI, is an index that estimates the behavior of the prices of a series of products widely consumed by a typical family (married couple with two children), popularly known as the family basket, and which will be determined based on the household expenditure survey.
These products, as we have pointed out, are consumed on a regular basis and what the CPI will do is observe the variations in the prices of these products with respect to a sample made in advance. Meanwhile, that percentage may be positive, in the case that there has been an increase in the prices of the products, or, failing that, negative, in the case that there has not been, that is, if the fall in the values is foreseen. .
The motivation of the CPI as well mentioned is the measurement of the prices of the most representative goods and services of a household during a time and in a given region, meanwhile, the CPI will also help as an indicator to know whether or not it exists. inflation, to update debts, to review salaries at the behest of joint discussions between unions and the state.
It should be noted that all CPIs must observe the following conditions: representation and reliability, questions that will be obtained from the work on a sample that covers the maximum amount of population possible; and let it be comparable both in time and space with other CPIs of other nations and of the same periods.
Meanwhile, it is important that we point out the disadvantages attributed to the CPI, namely: it does not consider new products that have been introduced until its new update; it does not consider the black economy; Variations in the values are appreciated if the surveys are not rigorous; and it does not incorporate those changes inherent to quality.
