Jason Fernando is a professional investor and writer who enjoys tackling and communicating complex business and financial problems. Peter Westfall is a distinguished professor of information ...

"According to the formula, COLAs are based on increases ... The failure to account for this when calculating CPI has been called substitution bias. "A fixed market basket measure like the CPI ...

How the CPI is calculated To calculate the CPI ... Because the PCE and CPI differ in their formula, weighting, scope and other effects, their results are different. The Federal Reserve prefers ...

This standard calculation is known as the Consumer Price Index for All Urban Consumers ... price adjustments every month. The specific formula for adjustment is also stated in the contract.