Plutocratic vs. Democratic CPI: How Prices Impact Different Households
The article compares two ways of calculating the Consumer Price Index (CPI) to see how they affect the average household. They looked at data from 1987 to 1997 and found that the plutocratic method, which is commonly used, gives different results than the democratic method. The study shows that during a period of low inflation, the two methods can lead to different measures of price change.