United States yearbook - 1982 (1)

452 Prices
In 1919, BLS began to publish complete indexes at semiannual intervals, using a weighting structure
based on data collected in the expenditure survey of wage-earner and clerical-worker families
in 1917-19 (BLS Bulletin 357, 1924). The first major revision of the CPI occurred In 1940, with subsequent
revisions in 1953,1964, and 1978.
The current revision, initially issued with release of the January 1978 data, is based on updated
“ market baskets” of goods and services and revised expenditure weights derived from a 1972-
1973 Consumer Expenditure Survey.
Effective with the January 1978 index, BLS began publishing CPI’s for two population groups: (1)
a new CPI for All Urban Consumers (CPI-U) which covers approximately 80 percent of the total
noninstitutional civilian population; and (2) a revised CPI for Urban Wage Earners and Clerical
Workers (CPI-W) which represents about half the population covered by CPI-U. The CPI-U includes
in addition to wage earners and clerical workers, groups which historically have been excluded
from CPI coverage, such as professional, managerial, and technical workers, the self-employed,
short-term workers, the unemployed, and retirees and others not in the labor force.
The CPI is based on prices of food, clothing, shelter, fuels, transportation fares, charges for doctors'
and dentists' services, drugs, and other goods and services purchased for day-to-day living.
Prices are collected in 85 areas across the country from over 18,000 tenants, 18,000 housing units
for property taxes, and about 24,000 establishments. Area selection was based on the 1970
census. Ail taxes directly associated with the purchase and use of items are included in the index.
Prices of food, fuels, and a few other items are obtained every month in all 85 locations. Prices of
most other commodities and services are collected monthly in the five largest geographic areas
and every other month in other areas.
In calculating the index, each item is assigned a weight to account for its relative importance in
consumers’ budgets. Price changes for the various items in each location are then averaged. Local
data are then combined to obtain a U.S. city average. Separate indexes are also published for 28
local areas, usually consisting of the Standard Metropolitan Statistical Area (SMSA); see text, page
2. Area definitions are those established by the Office of Management and Budget in 1973. Definitions
do not include revisions made since 1973. Area indexes do not measure differences in the
level of prices among cities, they only measure the average change in prices for each area since
the base period. For further detail regarding the CPI, see Consumer Price Index; C oncepts and
C ontent O ver the Years, BLS report number 517.
Statistical reliability.— For a discussion of statistical collection and estimation, sampling procedures,
and measures of statistical reliability pertaining to the producer price index and the CPI, see
Appendix III.
Historical statistics.—Tabular headnotes provide cross-references, where applicable, to H isto ric
a l S tatistics o f the U nited States, C olonial Times to 1970. See Appendix I.
No. 744. P u rc h a s in g p o w e r o f t h e d o l l a r : 1940 to 1982
[ 1 9 6 7 « $ 1 . 0 0 . P ro d u c e r p ric e s p rio r to 1 9 6 1 , a n d c o n s u m e r p rices p rio r to 1 9 6 4 , e x c lu d e A la s k a a n d H a w a ii. F o r 1 9 4 0 a n d 1 9 4 5 ,
p ro d u c e r p ric e s b a a e d o n a ll c o m m o d itie s in d ex; s u b s e q u e n t y e a rs b a s e d o n fin ished g o o d s in d e x . O b ta in e d b y d iv id in g th e
a v e ra g e p ric e in d e x fo r t h e 1 9 6 7 b a s e p e rio d (1 0 0 .0 ) b y th e p ric e in d e x fo r a given p e rio d a n d e x p re s s in g th e re s u lt in d o lla rs
a n d c en ts. A n n u a l fig u re s a r e b a s e d o n a v e ra g e o f m o n th ly d ata]
AN N U AL AVERAGE AS
ANNUAL AVERAGE AS
AN N U A L AVER AG E AS
M EASUR E D BY—
M EASURED BY—
MEASUREO BY—
YEAR
YEAR
YE AR
P ro d u c e r C o n s u m e r
P ro d u c e r
p rices
C o n s u m e r
P ro d u c e r C o n s u m e r
p rices p rices
p rices
p ric e s p ric e s
1940............... $ 2 , 4 6 9 $2, 3 8 1 1 9 5 8 .............. $ 1 , 0 7 3 $ 1 , 1 5 5 1 9 7 0 ............
1 9 4 5 .............. 1 . 8 3 2 1.855 1 9 5 9 ............. 1.075
1 9 4 8 .............. 1 . 2 5 2 1.387 1 9 6 0 ............. 1.067 1.1P7 1 9 7 2 ............
1 9 4 9 .............. 1 . 2 8 9 1.401 1 9 6 1 .............. 1.067 1 1 1 6
1 9 5 0 .............. 1 . 2 6 6 1.387 1 9 6 2 ............. 1.104
1 9 5 1 .............. 1 . 1 5 6 1.265 1 9 6 3 .............. 1.067 1.091 1 9 7 5 ...............
1 9 5 2 .............. 1 . 1 6 3 1.258 1 9 6 4 .............. 1.063 1.076 1 9 7 8 ..............
1 9 5 3 ............. 1 . 1 7 5 1. 2 4 8 1 9 6 5 ............. 1. 0 4 5 1.058 1 9 7 7 ............ . . 5 5 0
1 9 5 4 ............. 1 . 1 7 2 1.242 1 9 6 6 ............. 1.012 1 9 7 0 .........
1 9 5 5 ............. 1 . 1 7 0 1.247 1 9 6 7 ............. 1.000 1 9 7 9 .............
1 9 5 6 ............. 1 . 1 3 8 1.229 I 9 6 0 ............. .972
1 9 5 7 ............. 1 , 0 9 8 1.186 1 9 6 9 ............. .938 .911 1 9 0 1 ...............
1902, J u n e ................... ^3 5 7 .3 4 8
S o u rc e : U ,S . B u re a u o f L a b o r S ta tis tic s . M o n th ly d a ta in U .S . B u re a u o f E c o n o m ic A n a ly s is , Survey o f C urrent Business.