chapter  III
5 Pages

How the CPI Is Constructed

Knowledge of how the CPI is constructed is needed to understand the reasons that biases occur and the rationale for our recommendations for improvements and changes. This section provides a brief description of the BLS methodol­ ogy highlighting the places where biases and key issues are likely to arise. We refer the reader to BLS documentation for more detail on data collection pro­ cedures and index construction methodology, as well as to recent articles by Armknecht (1996), and Shapiro and Wilcox (1996b).9