Because both the core CPI and the median CPI are heavily influenced by OER, what would happen if we removed all four regional OER subindexes
from the calculation of the median CPI?
An additional issue was raised, however, when the reweighted subindexes
In addition, designing subindexes
provided a means of monitoring the dollar's movement against the currencies of particular regions of the world, which other indexes did not offer.
By way of background, the CPI is constructed by first aggregating the roughly 90,000 price quotations collected each month to form a series of subindexes
for categories of items such as "Apples," "Men's Shirts," and "Prescription Drugs," and then aggregating those subindexes
to form the overall CPI.
Raw data was collected for more than 50 measures, gathered into 11 subindexes
and three indexes.
Each index is made up of three to seven similarly graded subindexes
, each of which, in turn, is composed of a variety of data and rankings - more than 150 separate measurements.
The Present Situation and the Expectations subindexes
slightly improved during the third quarter from an all-time low, but then resumed their decline in the fourth quarter of 2012.
On the recommendation that aggregation of the CPI subindexes
be carried out using a "superlative" index formula, specifically a "trailing Tornqvist" formula: "Superlative measures use special formulas and current expenditure data.
63, with 31 of 33 subindexes
ending in positive territory.
Both the "present situation" and the "expectations" subindexes
regressed sharply during the first and second quarters of the year.
The assessment is derived by analyzing three subindexes
-- Travel and Tourism Regulatory Framework; Travel and Tourism Business Environment and Infrastructure; and Travel and Tourism Human, Cultural and Natural Resources.
A comprehensive list of the ECI subindexes
currently published is presented in tables 33-35 of the Current Labor Statistics section of this issue.