Consumer Price Index Manual: Theory and Practice

This book revises and expands the book Consumer Price Index: an ILO Manual, which was published in 1989. A consumer price index (CPI) measures the rate at which the prices of consumer goods and services change over time. It is important for economic, monetary and social policy making and has impli-cations for Governments, households, workers, businesses and all responsible economic agents. The book provides the most complete account of this subject that I know. It explains the theory and methods that are used to calculate a consumer price index and also revises the economic and statistical concepts that are used for making good decisions in the choice of an index, regarding its prime purposes. After a foreword, a preface and a reader's guide, the content is developed in 23 chapters and four annexes, a glossary of main terms and formulae, a bibliography and an index of terms. Many tables, figures and boxes illustrate its contents. A number of statistical ideas are considered in the text. Chapter 5 is devoted to sampling techniques; item substitution, sample rotation, etc. are explained in Chapter 8; errors and bias are treated in Chapter 11; price statistics are considered in Chapter 14; the axiomatic and stochastic approaches to index number theory are included in Chapter 16. Other relevant conceptual, practical, technical and economic aspects are developed. Positive aspects include the sensible order of the contents, the high quality of the printed text and the international participation in its production (printed in China, typeset in India, published in Europe and with the copyright shared between seven international organizations). The print fount is rather small, but a larger fount would have significantly expanded an already substantial book. Overall, my opinion of the book is very positive.