United States Consumer Price Index (CPI) n.s.a.

Consumer Price Index n.s.a. reflects changes in prices of a basket of consumer goods and services in the specified month compared to the base period, which is set to 1982. The index shows price changes from the perspective of the consumer. The index calculation is not seasonally adjusted, i.e. it does not reflect annual changes occurring approximately at the same time and that are approximately equal in size. Such changes may arise from holidays, weather and production cycles, etc.

Goods and services included in the CPI calculation basket are divided into eight main groups: food and beverages, housing, clothing, transportation, medical care, recreation, education and communications, other goods and services. In turn, these eight groups are divided into more than 200 categories, which include about 80,000 titles. The index calculation does not include income taxes and investment items (stocks, bonds, insurance policies). Unlike the producer price index, prices for imported goods and excise prices are included in calculation.

Prices for goods and services, based on which the index is calculated, are collected from a monthly survey of approximately 23,000 trade and service companies. The sample is revised from time to time. Also, thousands of families across the country are interviewed. Weights of calculation elements are regularly reviewed. The indicator is calculated in comparison with benchmark prices as of 1982.

The CPI calculation takes into account spendings of urban residents, such as specialists, self-employed citizens, unemployed, officials, pensioners. Farmers, rural population, military personnel and individuals in prisons and psychiatric hospitals are not included in calculation.

Not seasonally adjusted CPI is rarely interpreted separately, because high volatility prevents from having an objective picture of price changes. Generally, CPI growth indicates an increase in inflation and is seen as positive for the dollar.