Quick Tip: How the Consumer Price Index (CPI) is Calculated

How the Consumer Price Index (CPI) is Calculated

In calculating the Consumer Price Index (CPI), the government measures the change in prices of roughly 95,000 goods and services nationwide. The goods and services are divided into 8 major categories, which are:

1. Housing (41%)
2. Transportation (17%)
3. Food and beverages (15%)
4. Medical care (7%)
5. Education and communication (6%)
6. Recreation (6%)
7. Apparel (4%)
8. Other (4%)

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About Robert Henderson and Lansdowne Wealth Management

Robert Henderson is the President of Lansdowne Wealth Management, an independent, fee-only advisory firm in Mystic, CT. His firm specializes in financial planning and investment management for retirement, with a special focus on the particular needs of women that are divorced or widowed. He is an Accredited Asset Management Specialist and a Certified Divorce Financial Analyst. Mr. Henderson can be reached at 860-245-5078 or bhenderson@lwmwealth.com. You can also view his personal finance blog, The Retirement Workshop at http://lwmwealth.com/blog and the firm’s website at http://www.lwmwealth.com.

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