Actual CPI-U basket of goods발음듣기
Actual CPI-U basket of goods
[Male Voice] What I want to do in this video is explore what the actual basket of goods looks like for the consumer price index.발음듣기
Right over here, this is a table I got, this is from a press release issued by the Bureau of Labor Statistics.발음듣기
If you do a search for a CPI or a CPI-U in Bureau of Labor Statistics, you should find the press release where they issue the CPI.발음듣기
They say the Consumer Price Index for all urban consumers, and just like we talked about in the last video, when people talk about the CPI Index, they're really talking about, or they tend to be talking about, the CPI-U.발음듣기
The base year, actually they have a range, maybe I guess they take an average between 1982 and 1984.발음듣기
What they do in this first column, so these are the different buckets that people spend, that the urban consumer might spend some of their money on.발음듣기
About a little under 15% is spent on food and beverages. Then they break down that 15%, so 13% is on food and then they even break it out between 7% or a little under 8% is food at home.발음듣기
Then they break it out between cereals, meats, dairy and related products, fruits and vegetables.발음듣기
The average, based on the way the basket looks, it looks like they're spending about the same amount on fruits and vegetables as they're spending on alcohol.발음듣기
Well, I don't know if that's a good trend right over there, but that's why this is interesting to look at, because this is viewed as a typical basket of goods for your average urban consumer.발음듣기
You can see they're spending a little bit more on meats, poultry and fish. You can see the breakdown.발음듣기
They're spending 41%, the basket of goods, on housing, and they even break that up in terms of some of it is your primary, some of it is your general shelter, then there's stuff like fuels and utilities.발음듣기
That's encapsulated in your housing, you're going to have to heat your home and whatever else.발음듣기
The basket of goods, so this is viewed as the typical urban consumer spending 3.6% on apparel, 17% on transportation, 6.6% on medical care, and almost a similar amount on recreation.발음듣기
You might say, "Wait, most people these days in the U.S. don't smoke, but the ones who do spend way more than this."발음듣기
For example, if one out of ten people spent 10% of their income on tobacco and the other people don't smoke at all, then you might get on average, the average basket of goods, is about 1%.발음듣기
That's going to change as people's habits change, or as new goods and services emerge on the market, or frankly even as prices change, that will change.발음듣기
But you have to some weighting in which to take a weight of the price changes, or to weight the average percent changes.발음듣기
Relative to that base year, they then give us the prices, the price indices for each of these buckets in November 2011, and then December 2011.발음듣기
Then they're going to actually figure out the unadjusted percent change to December 2011 from.발음듣기
This is year over year, from December of the previous year, and this is from the previous month.발음듣기
You can see the change from the previous year is much larger than the change from the previous month.발음듣기
One way to look at this, this is saying in November 2011, food and beverages, on average, were about 2.3 times more expensive than they were between 1982 and 1984.발음듣기
December 2012, sorry, December 2011, they were about 2.31 times more expensive than they were in 1982-1984.발음듣기
If we set 1967 as the base year, then all items, if we use the default base year of 1982-1984, in November 2011 all items were about 2.26 times as expensive as they were in 1982-1984.발음듣기
You could go down all of the categories to essentially see these are all relative to 1982-1984, so you can see how much things have gotten more expensive. It's interesting.발음듣기
In fact, there are some categories that have even gotten cheaper. For example, new and used motor vehicles.발음듣기
It hasn't changed much at all since, based on at least this weighting, and they do all these adjustments based on the quality of the car.발음듣기
You might say, "Wait, I'm spending more on my car than I did in 1982," but they're making adjustments based on your car being that much better and all of that.발음듣기
Things like medical care have gotten a lot more expensive since the early '80s; four times as expensive, you see right over there.발음듣기
Recreation in general has not gotten that much more expensive. Information and information processing has gotten cheaper.발음듣기
I don't know if you were around in the early '80s, but actually the cost to call someone long distance has gone down dramatically.발음듣기
They don't do it directly because obviously computers have gotten orders of magnitude more powerful, but they have gotten on cheaper average, and they have gotten much, much more powerful.발음듣기
Then as we mentioned before, this measures the percent change to December 2011 from the previous year.발음듣기
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