Consumer Price Index Fundamentals: Compilation and Inflation Analysis

Accurate measurement of price changes is the cornerstone of sound economic policy, wage indexation, and financial planning. Understanding how the Consumer Price Index (CPI) is constructed is essential for anyone analyzing inflation, economic trends, or public policy. This text-based course guides you through the foundational concepts and practical methodologies of price index compilation, preparing you to interpret and work with inflation data confidently. You will start by mastering key terminology, basic economic concepts, and the theoretical foundations of price indices. From there, you will explore how to establish representative baskets of goods, collect reliable price data, and apply modern formulas to calculate index changes. You will also learn how to address contemporary challenges, such as handling quality changes in goods and integrating digital transaction data into modern index compilation workflows. What you'll learn: - Understand the core economic concepts and definitions underlying the Consumer Price Index (CPI) - Learn the step-by-step methodology for selecting representative consumer baskets and weighting schemes - Apply mathematical formulas to calculate elementary and aggregate price indices - Analyze techniques for adjusting indices when products undergo quality changes or disappear from the market - Explore modern data collection practices, including the integration of scanner data and online price tracking - Interpret CPI data to assess inflation trends and inform policy or business decisions This course is structured to build your knowledge from the ground up, starting with basic definitions and index theory before moving into practical compilation techniques, data source management, and modern digital workflows. You will read clear explanations, analyze mathematical examples, and work through conceptual exercises to solidify your understanding. This course is designed for beginners, aspiring economists, public policy students, financial analysts, and statistical agency staff. No prior experience in index compilation or advanced statistics is required to begin. Gain a practical, comprehensive understanding of how inflation is measured in the modern economy.