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Modernizing data collection for the Consumer Price Index

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Abstract

This article discusses collection of data by US Bureau of Labor Statistics (BLS) for use in the Consumer Price Index (CPI), and the new approaches BLS is taking to modernize data collection, including an expansion of its corporate data collection program. As the providers of corporate data, the business community can help the BLS with this modernization initiative. The first section gives an overview of the CPI and traditional data collection methods. The second section explains various types of alternative data BLS is experimenting with and using, and elaborates on corporate data. The last section explains BLS research and uses of corporate data and their advantages for BLS, taxpayers, and the business community.

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Notes

  1. As part of the BLS contract for this data, BLS agreed to recognize J.D. Power by name when we talk about this product. This is basically similar to informed consent provisions under CIPSEA (see last section of this article).

  2. The paper has also been presented during a session on Improving Economic Price Statistics through the Use of Alternative Data at the American Economic Association’s 2020 annual meeting on January 5. It was part of a session that included four papers on work with alternative data in all three of the BLS price programs, i.e., CPI, Producer Price Index (PPI), and US Import and Export Price Indexes (MXP).

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Acknowledgements

The author thanks David Friedman, BLS Associate Commissioner for Prices and Living Conditions, for his comments and editorial support.

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  1. Branch of Consumer Prices, Division of Consumer Prices and Price Indexes, Bureau of Labor Statistics, Washington, DC, USA

    Crystal Konny

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  1. Crystal Konny
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Correspondence to Crystal Konny.

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Konny, C. Modernizing data collection for the Consumer Price Index. Bus Econ 55, 45–52 (2020). https://doi.org/10.1057/s11369-019-00146-3

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