Limitations Of Cpi As A Measure Of Cost Of Living


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What are some limitations of the consumer price index (CPI)?

    https://www.investopedia.com/ask/answers/012915/what-are-some-limitations-consumer-price-index-cpi.asp
    Jul 26, 2020 · Despite being followed so relentlessly, the consumer price index has its limitations and is an imperfect a measure of inflation or the cost of living.

How is a Cost of Living Index Calculated?

    https://www.investopedia.com/ask/answers/100214/how-cost-living-index-calculated.asp
    Jul 14, 2019 · Limitations of Using CPI as a Cost of Living Index . There are limitations of using CPI as a cost of living index since it's not intended to measure the actual costs of living …

Consumer Price Index Frequently Asked Questions : U.S ...

    https://www.bls.gov/cpi/questions-and-answers.htm
    Mar 25, 2020 · Another limitation is that the CPI cannot be used to measure differences in price levels or living costs between one area and another as it measures only time-to-time changes in each area. A higher index for one area does not necessarily mean that prices are higher there than in another area with a lower index.

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