Prices and Cost of Living Data (17.003)
Program
17.003 Prices and Cost of Living Data
Federal Agency
BUREAU OF LABOR STATISTICS, DEPARTMENT OF LABOR
Authorization
Public Laws 62-426, 71-537, and 94-206, 29 U.S.C. 1-2.
Program Number
17.003
Last Known Status
Active
Objectives
To provide statistical data for assisting in the evaluation of consumer, producer, export and import prices and price changes, and consumer expenditures.
Types of Assistance
Dissemination of Technical Information.
Uses and Use Restrictions
Provides for Consumer Price Indexes (CPI) which measure changes in prices of goods and services consumed by all urban households as well as urban wage earners and clerical workers. As the basis for most estimates of changes in the purchasing power of the consumer's dollar, the CPI is a major economic indicator and has widespread use in escalation adjustments in both private and public sectors. Provides for Producer Price Indexes (PPI) which measure average changes in selling prices received by domestic producers for their output and which are widely cited within price escalation clauses of long term sales contracts to protect both parties against inflation. Provides Export and Import Price Indexes to measure the effect of international trade prices on U.S. economy. The Consumer Expenditure (CE) Surveys provide periodic updates to the market basket and the weights used to calculate the CPI. In addition, the CE supplies information on consumers' spending and income by characteristics such as income, age, race, family size, and region.
Eligibility Requirements
Applicant Eligibility
Request for information may be made by the general public.
Beneficiary Eligibility
General public.
Credentials/Documentation
None.
Application and Award Process
Preapplication Coordination
None. This program is excluded from coverage under E.O. 12372.
Application Procedure
Requests for information and assistance may be made to the nearest regional office of the Bureau of Labor Statistics listed in Appendix IV of the Catalog.
Award Procedure
Not applicable.
Deadlines
None.
Range of Approval/Disapproval Time
Appeals
Not applicable.
Renewals
Not applicable.
Assistance Considerations
Formula and Matching Requirements
Not applicable.
Length and Time Phasing of Assistance
Not applicable.
Post Assistance Requirements
Reports
Not applicable.
Audits
Not applicable.
Records
Not applicable.
Program Accomplishments
In fiscal year 2003, the Consumer Price Indexes (CPI), Producer Price Indexes (PPI), International Price Indexes (IPP), and the Consumer Expenditure Surveys (CE) programs continues as will regular publication of data from these price statistics programs. In fiscal year 2003, the CPI will complete work introducing electronic data collection for items other than rent. on its major revision program. Effective with the January 2002 CPI, published in February 2002, the index will be based on a revised set of market basket expenditures. The new expenditure patterns will be based on expenditure data collected in the 1999 and 2000 Consumer Expenditure Survey rather than on the current 1993-1995 CE data. This update marks a change in the CPI's updating policy. Previously, market basket weights were updated on a roughly decennial basis. Beginning with the January 2002 update, the CPI will now update the expenditure patterns on a biennial basis. During 2002, this program will begin publication of a new superlative measure of changes in living costs. The new measure will more fully reflect substitutions consumers make in response to changes in relative prices. The CPI program will continue to expand samples to support the broader use of hedonic modeling in quality adjustment and to support the more timely introduction of new goods and services into the index. In January 2002, the IPP updated weights in the Export and Import Price Indexes with 2000 trade values. The IPP has also developed a process to update the weights used in the construction of the indexes on an annual basis, as opposed to the current quinquennial re-weighting of the indexes. Annual updating of the weights will commence with the release of January 2004 data. These indexes will be constructed using calendar year 2002 weights. In addition, the IPP and the PPI are jointly developing a new web-based repricing collection tool. When completed, respondents will be able to use the internet to enter their monthly repricing data directly into a BLS database. The program is continuing work on development of international services. Coverage of the PPI was expanded to include insurance agencies, brokerages, and investment services, while some mining and manufacturing industries will be will be systematically re-sampled. A major quality improvement initiative continues to reduce new item bias in industries characterized by the rapid introduction of new products. Finally, a new initiative to survey the non-residential building construction sector continues. The CE has expanded its sample by approximately 50 percent in the urban areas to allow the CPI to reweigh their indices in a more timely manner. The CE has completed a project to move the interview survey from a paper and pencil instrument to a computer assisted instrument. An extensive research endeavor is also underway in CE to improve the expenditure estimates collected from respondents. Lastly, work on the redesign of the CE computer processing systems continues.
Financial Information
Account Identification
16-0200-0-1-505.
Obligations
(Salaries and Expenses) FY 02 $147,966,513; FY 03 est $159,671,000; and FY 04 est $167,602,000.
Range and Average of Financial Assistance
Not applicable.
Regulations, Guidelines and Literature
"Consumer Price Index"; "Producer Price Index"; "Export Price Index"; "Import Price Index"; "Consumer Expenditure Survey," "Monthly Labor Review"; "BLS Handbook of Methods," BLS Bulletin 2414; "Major Programs of the Bureau of Labor Statistics"; "Publications of the Bureau of Labor Statistics."
Related Programs
10.950, Agricultural Statistics Reports; 11.025, Measures and Analyses of the U.S. Economy; 17.005, Compensation and Working Conditions.
Information Contacts
Regional or Local Office
Contact the nearest regional office of the Bureau of Labor Statistics listed in Appendix IV of the Catalog.
Headquarters Office
Bureau of Labor Statistics, Office of Prices and Living Conditions, Washington, DC 20212. Telephone: (202) 606-6960. Contact: Kenneth V. Dalton.
Web Site Address
Examples of Funded Projects
Not applicable.
Criteria for Selecting Proposals
Not applicable.
