Number: RS21245
Title: The Chained Consumer Price Index: A Brief Explanation
Authors: Brian W. Cashell, Government and Finance Division 
Abstract: In an effort to improve the CPI, the Bureau of Labor Statistics is introducing a supplemental measure which will be known as the chained consumer price index for all urban consumers (C-CPI-U). The C-CPI-U uses continuously updated expenditure weights, and thus reflects changes both in prices and in the composition of the consumer marketbasket. Because the new C-CPI-U will be subject to revision, with the final release two years after the reference date, it is an unlikely alternative for automatic indexing provisions.
Pages: 6
Date: Updated June 18, 2002