BLS WORKING PAPERS

U.S. DEPARTMENT OF LABOR

Bureau of Labor Statistics

 

OFFICE OF PRICES AND LIVING

CONDITIONS

An Examination of the Difference Between the CPI and the PCE Deflator

Dennis Fixler, U.S. Bureau of Labor Statistics

Ted Jaditz, U.S. Bureau of Labor Statistics

Working Paper 361

June 2002

 

All views expressed in this paper are those of the authors and do not necessarily reflect the policies of the U.S.

Bureau of Labor Statistics or the views of other staff members.
We would like to thank John Greenlees, Patrick Jackman, Greg Key, Clint McCully, Brent

Moulton, Robert Parker, and Jack Triplett for their comments on earlier versions of the paper. The

opinions expressed in this paper are those of the authors and do not represent an official policy of the

Bureau of Labor Statistics or of other BLS staff.

AN EXAMINATION OF THE DIFFERENCE BETWEEN

THE CPI AND THE PCE DEFLATOR

By Dennis Fixler and Ted Jaditz

Division Of Price and Index Number Research

Bureau of Labor Statistics

2 Massachusetts Ave. N.E. Room 3105

Washington, D.C. 20212

202-691-6579

Print Date 29-Dec-97
An Examination of the Difference Between the CPI and the PCE Deflator

Abstract: Both the Bureau of Labor Statistics (BLS) and the Bureau of Economic Analysis

(BEA) produce measures of the change in prices that consumers pay on the goods that they

consume. While these measures tend to agree in broad historical trends in prices, they sometimes

give different pictures of inflation over short horizons.

There are several reasons why these two indexes differ. First, the two indexes use different

formulas. For the period in question, the CPI is a Laspeyres index, while the BEA product is a

Fisher Ideal index. Second, the two indexes have different underlying concepts. The BLS product

measures the prices paid by (urban) consumers, while the BEA product measures the prices of final

consumption goods, wherever they are purchased. Finally, even when there is significant agreement

across indexes in the broad outlines of coverage, differences in how the detailed components are

implemented lead to differences in how prices are measured and differences in the weights attached

to specific series.

We quantify the magnitudes of each of these factors. There is no one “smoking gun” that

explains the discrepancy between the indexes. Rather, the overall discrepancy is the result of the

accumulation of a number of small effects.
Page 1

An Examination of the Difference Between the PCE Deflator

and the CPI

By Dennis Fixler and Ted Jaditz

Introduction

In the U.S., there are two major index programs measuring the change in prices that

consumers pay on the goods that they consume. One is the Consumer Price Index (CPI), produced

by the Bureau of Labor Statistics. The other is comprised of two price indexes produced by the

Bureau of Economic Analysis (BEA) to accompany the National Income Accounts for Personal

Consumption Expenditures (PCE).

Recently, the BLS has received numerous inquiries regarding the differences in inflation

rates measured by the Consumer Price Index for all urban consumers (CPI-U, or just CPI) and

BEA’s Implicit Price Deflator.1

 Accordingly, we seek to answer two questions: First, what

accounts for this discrepancy? Second, is the discrepancy likely a transient phenomenon or a

continuing trend?2

The discrepancy tends to vary over time. Figure 1 graphs the inflation rates of the two

indexes from the second quarter of 1983 to the second quarter of 1997. There are several periods

where the difference between the two inflation rates is large. Figure 1 also shows that in the past,

these differences have tended to disappear after a few quarters. Over long periods, the two indexes

give very similar measures of the trend in prices: At the highest level of aggregation, over the period

from II 1983 to II 1997, the average difference between the CPI and PCE inflation rates has been

less that 0.1 percent per year.

While these measures tend to agree in broad historical trends, there are reasons why the two

indexes may not give the same measure of price change over a given interval. First, they are

 

1

 The Implicit Price Deflator is one of two main BEA indexes of inflation. The other BEA product is the Chain Price

Index. The BEA holds that the chain price index is their featured price index and therefore it should be viewed as the

basis for any comparison to the CPI. In principle, we agree. Recently, the discrepancy between the CPI-U and the

Deflator has been larger and attracted more attention from the public and the economics profession. Hence, that is

the difference we address here.

2

 The magnitude of these discrepancies fell markedly with the July 1997 revision in methodology. Nevertheless, the

change in methodology did not eliminate some fundamental reasons for a difference between the measured rate of

inflation provided by these two indexes. These reasons are the focus of our attention.
Page 2

constructed using different formulas. Because of this difference in formula, even if the two indexes

were built out of the same components, they would not necessarily agree on the measure of changes

in prices. Second, the two indexes do not have the same components: there are differences in

measurement objectives across programs, and thus there are significant differences in how prices are

measures and weighted across the two indexes.

We start with the difference in formula. The CPI is a fixed weight Laspeyres price index.

The PCE Deflator is derived from deflation by a Fisher Ideal quantity index. The Deflator is in

effect the average of a Laspeyres price index and a Paasche price index. Since the Paasche price

index generally lies below a Laspeyres price index, one might expect that the Deflator will generally

measure less inflation than the CPI.

The two indexes also differ in their underlying conceptual framework or to put it simply,

their scope. The Personal Consumption Expenditures account in the National Income and Product

framework measures the goods and services purchased by persons, individuals, and non-profit

institutions.3

 In contrast the CPI measures the out-of-pocket expenditures of urban households. It

follows that the goods and services in the PCE Deflator should be a superset of the goods and

services in the CPI.4

 As a result, there are numerous items included in the PCE deflator which are

completely out of scope of the CPI. Some examples are military clothing, final expenditures by

museums and libraries, and food furnished and consumed on farms. Earlier papers also examine the

importance of the differences in scope and item definition.5

 

3

 See “Personal Consumption Expenditures” Methodology Paper Series MP-6, US Department of Commerce, June

1990.

4

 In practice, this is not quite the case. When one maps the prices and weights of the PCE into the CPI, there are a

small number of items that receive positive weight in the CPI that receive no weight in the PCE Deflator. Two

examples are SE6204 “Fees for Lessons and Instruction” and SE51, “Automobile Finance Charges.”

This occurs because the two indexes have different aggregation trees, and hence make different calls about how to

organize economic activity. In the CPI, for example, automobile finance charges are included in the transportation

section of the aggregation tree. BEA collects all financial services in the “Personal Business Services” section of the

national accounts. In this particular case, BEA uses a CPI index SE6802 “Personal Financial Services” to deflate the

relevant financial services section of the national accounts. That is a reasonable choice; however, note that the

information used to calculate the BLS automobile finance charge index will not appear anywhere else in the BLS

aggregation tree, and thus that information is lost to the national accounts.

In any event, the aggregate weight of the categories so affected in the CPI is quite small.

5

 See for example, Jack E. Triplett, “Reconciling the CPI and PCE Deflator,” Monthly Labor Review (September,

1981) pages 3-15, and “Reconciliation of Quarterly Changes in Measures of Prices Paid by Consumers,” Survey of

Current Business, March 1978.
Page 3

Appendix Table 4 presents the list of items that are included in the PCE but completely

beyond the scope of the CPI. This list is taken from Parker (1994).6

 These items are not included,

either in whole or in part, in the market basket which makes up the CPI.

There are several other items that are defined differently across programs and hence do not

overlap perfectly. When there is significant overlap in category definition across indexes, we choose

to treat the result as a difference in weighting and/or prices, rather than a difference in scope. We

therefore do not exclude these items when calculating the scope correction. To illustrate, consider

the CPI category “Physician Services” and the PCE category “Physicians.” The CPI focuses on the

out-of-pocket expenditures of households as determined from the Consumer Expenditure Survey,

though it makes an adjustment for expenditures paid for by third parties (insurers) by allocating their

expenditures to the various CPI medical categories. In contrast, the current dollar value for PCE

physicians includes third party payers (private and public) directly and comes from the Census of

Service Industries, the Health Care Financing Administration, and the Census Bureau’s Annual

Survey of Services.

As a result, the PCE category “Physicians” has a much greater weight in the PCE than

“Physicians Services” has in the CPI. In 1996, the PCE category “Physicians” accounted for about

3.77% of the total spending that falls within the scope of the PCE Deflator. In the same year,

“Physicians Services” spending accounted for a budget share of 1.89% of the CPI market basket.7

Even if the two indexes used the same measure of price for this category, this difference in weights

would mean that the two indexes would not track perfectly.

For many categories of items, the CPI and the PCE Deflator have similar conceptual

definitions, and BEA often uses the corresponding CPI index for deflation. For the physicians

services category, however, BEA uses the Producer Price Index for Physicians instead of the CPI

“Physicians Services” index. Given the difference in coverage, this is valid and sensible choice.

However, note that even if the two indexes had the same weight for this category, the use of different

measures of price change means that the two indexes will not track perfectly.

 

6

 Robert Parker, “Substitution Effects in Measures of Consumer Prices: From the CPI and Personal Consumption

Expenditures.” Internal BEA Memo to Carol Carson, January 5, 1994.

7

 The figure for the CPI is the 1996 relative importance for Physicians Services. See Note 13 for a discussion of the

difference between the relative importance and an actual expenditure weight.
Page 4

Others might use different criteria to decide which categories warrant matching, and which

are so dissimilar that they should be excluded as scope differences. Different assumptions will lead

to different results. However, we can address questions such as: How much of the difference in the

CPI and the PCE Deflator is due to differences in the weight placed on physicians services --

regardless of the differences in how physicians services are counted within each index? How much

is due to different measures of prices for this category?

We find that there is no one “smoking gun” that accounts for the entire discrepancy between

the two indexes. The discrepancy is caused by an accumulation of many small factors. All of the

factors we discuss — differences in formula, differences in scope, and differences in weights and

prices — contribute to the discrepancy in varying degrees.

Our analysis proceeds as follows. To quantify the formula effect, we use publicly available

data from the National Income and Product Account tables to construct a fixed-weight Laspeyres

price index out of the same data used to construct the PCE Deflator. The difference between the

PCE Deflator and the Laspeyres construct is used to estimate how much of the difference between

the two indexes is due to the difference in formula.

Second, we drop those items that are completely out of scope of the CPI, leaving a fixed

weight index that is on the same conceptual footing as the CPI. Third, we construct an exact

decomposition of the remaining difference between the CPI and our fixed weight, scope adjusted

Laspeyres PCE price index. We identify every difference in the weights and sources of prices for

similar items across the two indexes. It is important to keep in mind that this decomposition is a

simple accounting of the difference between the two indexes; neither the validity of weight and price

differences nor the relative merits of the two indexes is at issue.

Differences in Formula

While the CPI is a Laspeyres price index, the PCE Deflator is a derived index. The PCE

obtained by deflating the ratio of PCE expenditures from two periods with a quantity index. Until

recently, the PCE Deflator was computed with by deflating with a Laspeyres quantity index. In

1995 the BEA moved from the Laspeyres index formula to a chain Fisher index formula for the

quantity index.
Page 5

The implicit PCE Deflator derives from a property of index numbers called the product test:

between periods t and t+1, the product of a price index and a quantity index yields the ratio of

expenditures in t+1 to expenditures in t. To illustrate, let the price of good i in period t be p

t

i

, and the

quantity of good i in period t be q

t

i

. Total expenditures in period 1 would be ∑ p

1

i q

1

i , while total

expenditures in period 2 would be ∑ p

2

i q

2

i . The Fisher Ideal index formula satisfies the product test:

∑ p

2

i q

2

i / ∑ p

1

i q

1

i = Fp

1,2 Fq1,2

where Fp

1,2 and Fq1,2 are the Fisher Ideal price and quantity indexes, respectively. The PCE deflator

is the Fisher Ideal implicit price index obtained by dividing the ratio of expenditures by a Fisher

Ideal quantity index. That is,

(∑ p

2

i q

2

i / p

1

i q

1

i )/ Fq

1,2= Fp1,2 .

The Fisher Ideal quantity index is the geometric mean of a Laspeyres quantity index and a

Paasche quantity index. Pursuing our example, we have the Laspeyres quantity index

Lq

1,2 = ∑ p

1

i q

2

i / ∑ p

1

i q

1

i .

Deflating revenues by a Laspeyres quantity index leads to the price index

(∑ p

2

i q

2

i /∑ p

1

i q

1

i ) / (∑ p

1

i q

2

i / ∑ p

1

i q

1

i ) = ∑ p

2

i q

2

i / ∑ p

1

i q

2

i ,

which is the Paasche price index between periods 1 and 2. Similarly, one can show that deflating by

the Paasche quantity index

Pq

1,2 = ∑ p

2

i q

2

i / ∑ p

2

i q

1

i ,

yields a Laspeyres price index. The Fisher ideal quantity index is the geometric mean of the

Laspeyres and Paasche quantity indexes:

Fq

1,2 = ( Lq1,2 Pq1,2 )0.5

and the corresponding price index will generally lie between a Paasche and a Laspeyres price index.

Thus, inflation rates reported by a Fisher Ideal index is generally less than the inflation rates given

by a Laspeyres index.8

 

8

 Aizcorbe and Jackman “The Commodity Substitution Effect in CPI Data, 1982-91” Monthly Labor Review December

1993 showed that a Fisher based CPI showed a smaller rate of inflation than the Laspeyres based CPI.
Page 6

To implement the Fisher Ideal index, both price and quantity data are required for both

periods for which one wants to calculate the index. In practice, price information is available on a

more timely basis than the current dollar information used to construct the quantity weights. To

publish an index in a timely manner, the current index must be calculated using provisional data. In

part to accommodate this, BEA indexes have a “tail period,” during which indexes are calculated

using a slightly different approach than is used for the historical series. With the July, 1997

revision, the computation of indexes in the tail period was changed: the major difference concerns

how current nominal value information is incorporated into the index.9

Typically, each summer, BEA revises the tail indexes. The earliest four quarters of the tail

period are recalculated using updated nominal values data and using the methodology of the

historical series. The remaining quarters are “re-chained” to the new values of the revised series.

The current tail period, which will be revised in July, 1998, starts in quarter III 1996 and ends in

quarter I 1998. At that time, the data from III 1996 to II 1997 will be revised and added to the

historical series, and the new tail period will then run from III 1997 to I 1999.

The use of chaining is another way in which the PCE Deflator differs from the CPI-U.

More specifically, the PCE Deflator is calculated by “chaining” one period indexes: the Fisher price

index Fp

1,3 is calculated by multiplying together two one-period Fisher price indexes:

Fp

1,3 = Fp1,2 Fp2,3.

In contrast, the CPI is a fixed-base-period index, though it is chained at decennial revisions. Thus

the CPI index for comparing period 1 to period 3 prices would be calculated directly:

Lp

1,3 = ∑ p

3

i q

1

i / ∑ p

1

i q

1

I .

If the CPI were chained like the PCE, then there would be a substantive change in the underlying

economic concept. The CPI attempts to measure the minimum level of expenditures needed by a

representative consumer to achieve a given level of utility in a given base period. For a chained

index, the reference utility level used to measure inflation is changing every period.

To estimate the importance of differences in formula, we re-calculate the BEA index as a

fixed-weight Laspeyres price index. For the weights, we use the 1992 average annual expenditures,

 

9

 Prior to the July, 1997 revision, the BEA did not use the Fisher formula in the tail period. The price deflator for the

tail period was calculated using a Laspeyres quantity index. This means that during the tail period, the deflator was

essentially a chained Paasche index. Starting with the July, 1997 revision, the BEA now uses the Fisher formula

throughout the series.
Page 7

divided by total 1992 personal consumption expenditures.10 We calculate this index using the same

price data used by BEA to construct the PCE deflator. We chose 1992 because it is the benchmark

year for the BEA data. As discussed below, we rebase the CPI to 1992 as well.

We performed the computation for highest level aggregate and for each of the major

components: Durables, Non Durables, and Services. Tables 1 through 4 report the results of the

analysis for each index in turn. In the “Inflation Rates” section of the table, Column 2 gives the

(annualized) quarter to quarter inflation rate calculated from indexes reported by the BEA. Column

3 gives the inflation rate calculated from the fixed weight approximation to the PCE deflator. In the

“Difference Analysis” section, column 2 gives the difference between the CPI index and the BEA

PCE deflator. Column 3 gives the difference between the inflation rate calculated from the fixed

weight PCE deflator and the inflation rate reported by BEA. The last two lines of the “Difference

Analysis” section reports the averages of the quarterly differences over the entire period.

As one might expect, the fixed weight PCE is generally larger than the Fisher based PCE

and so the difference between the CPI inflation rate and the PCE inflation rate falls with the use of a

Laspeyres formula instead of a Fisher formula. As seen in Table 1, the average difference in the

annualized overall inflation rates between the PCE Deflator and the CPI is 0.22% per year.

Recalculating the PCE deflator as a fixed weight Laspeyres price index rather than a Fisher would

increase the PCE deflator by an average of 0.14% per year—thus eliminating two thirds of the total

difference (on average). Looking at Tables 2, 3 and 4, the impact on the sub-indexes is qualitatively

the same, with the greatest difference observed in the durable goods sub-index.

Finally, as can be seen from Tables 3 and 4, the cases of Non Durable Goods and Services

do not appear to have large differences between the BEA published deflator and the CPI.

Consequently we do not discuss these two types of goods further.

Differences in Scope

To estimate how scope differences contribute to the overall discrepancy between the PCE

and the CPI, we remove from our fixed weight PCE all of the lines listed in Appendix Table 4.

Column 4 in the “Inflation Rates” section of Tables 1 through 4 reports the inflation rate derived

 

10 The BEA also produces a quarterly fixed weight price index benchmarked to 1992. The difference between the

BEA index and our constructed fixed weight index is small. Since we used BEA data to construct our indexes, any

difference is most likely due to rounding and differences in precision of the underlying data.
Page 8

from this scope-adjusted index. Column 4 in the “Difference Analysis” section reports the difference

between the scope-adjusted inflation rate and inflation rate calculated from a fixed weight PCE.

As can be seen from the “Overall Average” line in Table 1, the average scope adjustment is

-0.2% per year. In other words, at the highest level of aggregation, the effect of adjusting the fixed

weight PCE for the difference in scope is to increase the difference between the fixed weight PCE

and the CPI inflation rates. The price inflation for these items is on average closer to the rate of

inflation of the all items CPI than it is to the PCE Deflator. An effect of similar magnitude is present

in the durable goods index; see Table 2.

Weights and Prices

The scope adjusted fixed weight PCE transforms the PCE as close as possible into an index

with the same formula and objective as the CPI. The remaining differences can be essentially

described as weight and price differences. Differences in how item definitions are implemented can

lead to a difference in whether certain expenditures are included in the item category, and this leads

to a difference in weights. These differences in definition can also lead the two agencies to use

different measure of price change for similar categories.

Assuming that the same set of j commodities comprise each index, the difference between

the CPI and the scope adjusted fixed weight PCE can be written as:

CPI – PCE = ∑ w

j

cpi Pjcpi – ∑ w

j

pce Pjpce

where w denotes the weight for the price relative P. Adding and subtracting ∑ w

j

pce Pjcpi from the

right-hand side yields

CPI – PCE = ∑ w

j

cpi Pjcpi – ∑ w

j

pce Pjcpi + ∑ wpce

 j Pcpi

 j – ∑ w

j

pce Pjpce

= ∑ (w

j

cpi – w

j

pce) Pjcpi + ∑ w

j

pce( Pjcpi – Pjpce ). (1)

We refer to the first summand on the right-hand side as the weight factor and the second summand

as the price factor.11

 

11 This decomposition is not unique. One could form other decompositions by adding and subtracting alternative

constructions. This decomposition was selected because it was the easiest to implement.
Page 9

Even if the two indexes had the same weights, the differences in measures of price movement

means that the two indexes do not necessarily move together. Holding weights fixed, the price factor

is a measure of how the difference in component price indexes is translated into differences in the

aggregate indexes. For a given component category, if the BLS and the BEA use the same measure

of prices, then that category will not contribute to the difference in the overall aggregate indexes.

Some categories have large differences in prices, but small weights; thus, their net contribution to the

difference between the two indexes is small. For a category with large weight, even a relatively

small difference in price movements may provide a large contribution to the overall difference

between the aggregate indexes.

Even if the two indexes used the same set of indexes to measure price movement, the

difference in weights applied to these prices would mean that the two indexes would not necessarily

move together. The weight factor is a measure of how the difference in weights is translated to

differences in the two aggregate indexes. Obviously, the weight factor will be zero if all of the

weights are identical across indexes. Less obviously, the weight factor will be zero if all component

price indexes move in the same proportion.12 Even if weights differ across indexes, the weight factor

will be non-zero only if various component indexes move in different proportions.

Using 1992 as the base year, the CPI between 1992 and II 97 is computed to be 114.12 and

the scope adjusted fixed weight PCE for the same period is computed to be 112.32, implying that a

difference of 1.8 index points needs to be explained. From the above equation, we can decompose

this difference into a portion that is attributable to differences in weights, given a common price

index, and a portion that is attributable to differences in prices, given a common set of index

weights.

Comparing indexes in this manner requires the construction of a concordance. One requires

a mapping of the lowest level dis-aggregates from one index into comparable components of the

other index. Our concordance uses as its starting point information supplied by BEA listing the

sources of the price information used to construct the PCE Deflator. This listing is contained in

 

12 Recall that P

 j

cpi is the CPI price index for good j. Suppose that the CPI index increases by the same proportion for

all categories: P

 j

cpi = 110, say, for all j. Then, since ∑ w

 j

cpi = ∑ w

 j

pce=1,

∑ (w

 j

cpi – w

 j

pce) P

 j

cpi = ∑ (w

 j

cpi – w

 j

pce) 110 = ∑ 110*w

 j

cpi – ∑ 110* w

 j

pce

 = 110 – 110 = 0.
Page 10

Appendix Table 1. Where BEA does not use a BLS CPI source for their prices, we made judgment

calls as to the most comparable BLS index.

Completing the concordance required mapping the weights used in the fixed weight scope

adjusted PCE index to the comparable CPI category. This task is not straightforward. In some

cases, a line from the BEA index might map to a CPI aggregate, while a different BEA line might

map to one of the component a CPI indexes underneath the previous index in the CPI aggregation

tree. When a BEA line uses an CPI aggregate index as a source for prices, we use the CPI

aggregation tree to allocate the BEA weight over the various CPI dis-aggregate series underneath

that CPI aggregate.

For reasons of computational convenience, the price factor is reported relative to the BEA

PCE index categories, while the weight factor is reported according to the CPI index categories.

To conduct the analysis, we re-based each CPI component index to 1992=100 and used the

1992 relative importances as weights. The relative importances are the expenditure weights from the

1982-1984 Consumer Expenditure Survey, moved by the changes in the respective price indexes.

The relative importances for a given period are thus the percent of the total expenditures in the

(fixed) CPI index market basket accounted for by a given category. 13

Most of the item prices used in the computation of the PCE are derived from the CPI.

Differences in seasonal adjustment, however, leads to cases where the price factors are not zero even

though both programs obtain their price data from the same source.

 

13 Observe that the relative importances are not the same as an expenditure weight that is derived from the Consumer

Expenditure Survey. The principal difference is that the relative importance represents the dollar share of the cost of

the fixed (1982-84) market basket, whereas the expenditure weight represent the share of consumer spending. Some

information about the magnitudes of the differences are presented in the following table.

Expenditure Class/Item

1992

CES

Weight

1992 Relative

Importance

Food and Beverage 16.428 17.396

Housing 43.654 41.404

Apparel 6.442 6.005

Transportation 17.462 17.012

Medical Care 5.844 6.931

Entertainment 4.778 4.350

Other Goods and Services 5.392 6.902

Inform. Processing (Computers) 0.352 0.124
Page 11

The Weight Factors. By allocating the weight from the adjusted PCE to corresponding CPI

lines, we identify many large differences between the two indexes. Table 5 lists the items that have

the greatest difference in weight, without considering the price term. As can be seen from the table,

Owner’s Equivalent Rent provides the largest single difference in weight; the CPI gives much more

weight to this item. The PCE places greater weight on most medical services. Appendix Table 5

provides the complete list of the difference in weights, item by item, for every line in the CPI.

Why are there such large differences in weights? One factor is the different base periods for

the two indexes. The constructed fixed weight PCE index uses the patterns of expenditures current

in 1992, while the CPI weights are based on the 1982 consumer expenditure survey. The PCE

weights therefore reflect changes in consumption patterns over the decade 1982-1992 not reflected in

the CPI weights.

Another contributing factor is the differences in measurement objectives between the two

indexes. Many of the largest differences in weights occur where sectors where third party payors are

important. In the medical services categories, large expenditures by non-profit and government

agencies are in the scope of the PCE and out of scope of the CPI, and this certainly accounts for a

large part of the difference.

The total weight factor for all items for the period to II 97 is -0.16. For the period from

1992 to II 97, if one used the same price indexes to calculate the CPI and the scope adjusted fixed

weight PCE index, the differences in weights would result in the CPI being 0.16 points lower than

the PCE, ignoring the price factor. This implies that on average, the CPI tends to place slightly

greater weight on categories where prices are accelerating more slowly, and slightly less weight on

categories where prices are accelerating more quickly – where “quickly” and “slowly” are measured

using the CPI price indexes.

Calculating the contribution of individual items to the overall weight factor takes some care.

If all prices change in the same proportion, individual lines will have non-zero weight factors, while

the aggregate weight factor will be zero. To adjust for this effect, we measure the weight factor for

line j of the CPI as
Page 12

(w

j

cpi – w

j

pce) (Pjcpi – P

– )

where P

– is the (weighted) mean value of the CPI indexes in the comparison period.14

Table 6 contains the largest weight factors. (Appendix Table 5 lists the weight factors for

every line of the CPI.) Table 6 contains every line in the CPI for which the weight factor contributes

at least 0.05 index points to the difference in the CPI and the fixed weight scope adjusted PCE over

the period 1992-II 1996.

The Price Factors. Consider now the role of differences in measures of prices.15 In many

cases, the BEA and BLS use different measures of prices for more or less comparable line items.

Thus, even if the weights for the two indexes were the same, differences in measures of price change

could lead to differences in the resulting indexes.

Table 7 lists the BEA categories with the largest differences in index points between the

indexes used by the BEA to measure price movements and the comparable CPI indexes. For

Airlines, Computers, and Private Higher Education, the BLS and BEA use different measures of

price change and their indexes differ by 20 points over a period of a little less than four years. Table

7 contains every line in the PCE deflator where the difference in underlying indexes is greater than

one index point over the period. (Appendix Table 5 contains a complete listing of the differences in

index values for every line in the PCE deflator.)

The calculated price factor is a measure of how much these differences in prices contribute

to the differences between the two indexes, given a common weight structure. Differences in

measures of price movement account for 1.97 index points of the difference between the CPI and the

 

14 Since ∑ w

 j

cpi = ∑ w

 j

pce = 1, ∑ (w

 j

cpi – w

 j

pce) (P

 j

cpi – P

– )

= ∑ (w

 j

cpi – w

 j

pce) P

 j

cpi – ∑ (w

 j

cpi – w

 j

pce) P

–

= ∑ (w

 j

cpi – w

 j

pce) P

 j

cpi –( ∑ w

 j

cpi – ∑ w

 j

pce ) P–

∑ (w

 j

cpi – w

 j

pce) P

 j

cpi

so that the sum of the weight factors does not change.

15 Jack Triplett and Stephen Merchant in “The CPI and the PCE Deflator: An Econometric Analysis of Two Price

Measures,” Annals of Economic and Social Measurement, Vol.2/3, 1973, 263-282, also look at the differences in

behavior between 21 PCE component prices that come from the CPI and the source CPI component. For 15 of the 21

components, they “reject, wholly or partly, the ‘general hypothesis’ that PCE components present the same economic

picture drawn by their counterpart measures in the CPI.”
Page 13

PCE. Relative to an average calculated using PCE weights, the price indexes used to calculate the

CPI tend to grow faster than the price indexes used to calculate the scope adjusted fixed weight PCE

index. Table 8 gives the largest price factors between 1992 and II 97. Every line with a price factor

rounding to 0.01 or greater is included in Table 8.

Observe that although computers are listed in Table 7, the magnitude of its price factor is

not that great; the computer price factor suggests that it is responsible for only 0.11 of the index

point difference. Thus even though the differences in computer prices is the largest one in Table 7,

the weight is so small that the net effect is small.

Summary and Conclusions

We have sought to examine the difference between the CPI and the PCE with particular

attention to the reported increase in the difference between the two price indexes. Generally the

difference between them can be traced to differences in formula, differences in scope and differences

in the component prices and weights. We have examined the impact of each of these sources of

differences.

Our findings are summarized in Table 9. For the period 1992 to II 97, the difference

between the CPI, 114.12, and the published (Fisher) PCE, 112.47, is 1.65 index points. We

decompose this difference into formula, scope, price, and weight effects as follows:

If the PCE deflator was recalculated as a fixed weight, fixed base-period Laspeyres Index,

the value of the index would be 113.33. Thus, about 0.86 of the difference between the two indexes

over this period is attributable to the differences in formula used in each.

The scope-adjusted fixed weight PCE takes a value of 112.32 in II 1997. The figure

–1.01 is an estimate of the difference in the two indexes attributable to differences in the scope of the

indexes. If we dropped from a fixed weight analog of the PCE the items that are included in the PCE

but have absolutely no counterpart in the CPI, the difference between the two indexes would be

would be 1.01 points larger. 

The difference between the CPI and the scope-adjusted fixed weight analog to the PCE

Deflator is 1.80 index points. This difference can be decomposed into a weight effect and a price

effect. If the two indexes had the same weights on the comparable categories, the difference between

the two indexes would be a total of 0.16 points larger. If the two indexes had the same prices for
Page 14

comparable categories, the difference would be 1.97 points smaller. The remaining residual, -0.01

index points, is an unexplained residual, likely attributable to rounding error.

We conclude that the discrepancy between the two indexes is due to the difference in

formula and the difference in measures of price change. Empirically, over the period 1992 to II

1997, the scope effect and the weight effect worked to counter the formula effect and the price effect

and attenuate the difference between the two indexes.

In our examination of weight and price effects we found that items related to medical care,

such as hospitals, physicians, and health insurance, play a significant role within both the weight

effect and the price effect for the time periods examined. We also showed that even in some

instances where there happened to be relatively large price (weight) differences between items, as

with computers, the effect on the difference between the CPI and the PCE tended to be small.
Page 15

Figure 1.

PCE Deflator v. CPI “All Items” Annualized Rates of Inflation over Time.

-8.00

-6.00

-4.00

-2.00

0.00

2.00

4.00

6.00

8.00

83Q1 85Q1 87Q1 89Q1 91Q1 93Q1 95Q1 97Q1 

Quarter

-4.00

-2.00

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

CPI Inf PCE Inf

Difference (Right Axis)

PCE Deflator, All Items CPI

(Left Axis)
Page 16

Table 1

Summary of Adjustments to PCE Deflator (Line 1 of Table 206I)

BEA Fixed Weight Scope Correction CPI

(1) (2) (3) (4) (5)

Inflation Rates I 92 3.67 3.67 3.22 2.73

II 92 3.24 3.16 2.83 3.03

III 92 2.41 2.46 2.1 3.05

IV 92 3.19 3.23 3.48 3.51

I 93 2.89 2.93 3.13 2.92

II 93 2.4 2.47 2.37 2.90

III 93 1.37 1.42 1.6 1.83

IV 93 3.04 3.08 2.82 3.22

I 94 1.62 1.69 1.89 2.04

II 94 2.58 2.71 2.19 2.33

III 94 3.63 3.63 3.19 3.73

IV 94 2.65 2.84 1.93 2.49

I 95 2.75 2.92 2.7 2.77

II 95 2.32 2.59 2.19 3.09

III 95 1.97 2.05 1.98 2.10

IV 95 1.66 1.83 1.94 2.46

I 96 2.61 2.83 2.93 3.25

II 96 2.82 3.2 2.95 3.36

III 96 2.43 2.8 1.85 2.66

IV 96 2.92 3.24 3.07 3.31

I 97 2.15 2.39 2.49 2.33

II 97 0.96 1.13 1.05 1.09

Overall Difference Fixed Weight Scope Adjustment Residual

(1) (2) (3) (4) (5)

Difference I 92 -0.94 0.00 -0.45 -0.49

Analysis II 92 -0.21 -0.08 -0.33 0.20

III 92 0.64 0.05 -0.36 0.95

IV 92 0.32 0.04 0.25 0.03

I 93 0.03 0.04 0.20 -0.21

II 93 0.50 0.07 -0.10 0.53

III 93 0.46 0.05 0.18 0.23

IV 93 0.18 0.04 -0.26 0.40

I 94 0.42 0.07 0.20 0.15

II 94 -0.25 0.13 -0.52 0.14

III 94 0.10 0.00 -0.44 0.54

IV 94 -0.16 0.19 -0.91 0.56

I 95 0.02 0.17 -0.22 0.07

II 95 0.77 0.27 -0.40 0.90

III 95 0.13 0.08 -0.07 0.12

IV 95 0.80 0.17 0.11 0.52

I 96 0.64 0.22 0.10 0.32

II 96 0.54 0.38 -0.25 0.41

III 96 0.23 0.37 -0.95 0.81

IV 96 0.39 0.32 -0.17 0.24

I 97 0.18 0.24 0.10 -0.16

II 97 0.13 0.17 -0.08 0.04

Average 0.22 0.14 -0.20 0.29

St. Dev. 0.40 0.13 0.34 0.36
Page 17

Table 2.

Summary of Adjustments to PCE Deflator Durable Goods (Line 36 of Table 206I)

BEA Fixed Weight Scope Correction CPI

(1) (2) (3) (4) (5)

Inflation Rates I 92 2.02 1.81 1.87 2.48

II 92 1.61 1.9 1.66 3.07

III 92 0.4 0.17 -0.04 2.04

IV 92 0.4 0.63 0.26 2.59

I 93 1.08 1.04 0.93 0.52

II 93 1.91 2.2 1.78 3.01

III 93 1.66 1.8 1.31 3.10

IV 93 2.56 2.83 2.54 3.74

I 94 1.02 1.11 1.15 1.08

II 94 2.78 3.05 2.86 3.54

III 94 3.3 3.6 3.17 4.09

IV 94 0.39 0.84 0.28 2.65

I 95 1.42 1.97 1.8 2.85

II 95 0.12 0.69 0.56 2.35

III 95 -0.23 0.4 0.61 0.63

IV 95 -0.42 0.29 0.15 1.41

I 96 0.65 1.61 1.23 1.59

II 96 -1.76 -0.4 -0.5 0.29

III 96 -0.73 0.38 0.12 0.73

IV 96 -1.08 0.03 -0.37 0.51

I 97 -0.66 0.33 0.14 -0.18

II 97 -2.98 -1.74 -1.57 -1.13

Overall Difference Fixed Weight Scope Adjustment Residual

(1) (2) (3) (4) (5)

Difference I 92 0.46 -0.21 0.06 0.61

Analysis II 92 1.46 0.29 -0.24 1.41

III 92 1.64 -0.23 -0.21 2.08

IV 92 2.19 0.23 -0.37 2.33

I 93 -0.56 -0.04 -0.11 -0.41

II 93 1.10 0.29 -0.42 1.23

III 93 1.44 0.14 -0.49 1.79

IV 93 1.18 0.27 -0.29 1.20

I 94 0.06 0.09 0.04 -0.07

II 94 0.76 0.27 -0.19 0.68

III 94 0.79 0.30 -0.43 0.92

IV 94 2.26 0.45 -0.56 2.37

I 95 1.43 0.55 -0.17 1.05

II 95 2.23 0.57 -0.13 1.79

III 95 0.86 0.63 0.21 0.02

IV 95 1.83 0.71 -0.14 1.26

I 96 0.94 0.96 -0.38 0.36

II 96 2.05 1.36 -0.10 0.79

III 96 1.46 1.11 -0.26 0.61

IV 96 1.59 1.11 -0.40 0.88

I 97 0.48 0.99 -0.19 -0.32

II 97 1.85 1.24 0.17 0.44

Average 1.25 0.50 -0.21 0.96

St. Dev. 0.73 0.46 0.21 0.80
Page 18

Table 3.

Summary of Adjustments to PCE Deflator Nondurable Goods (Line 89 of Table 206I)

BEA Fixed Weight Scope Correction CPI

(1) (2) (3) (4) (5)

Inflation Rates I 92 1.62 1.67 1.67 1.74

II 92 2.42 2.39 2.42 2.75

III 92 2.81 2.64 2.56 2.93

IV 92 1.2 1.32 1.36 1.27

I 93 2.26 2.2 2.26 3.29

II 93 0.39 0.5 0.46 0.91

III 93 -0.43 -0.52 -0.54 -1.49

IV 93 2.65 2.51 2.57 2.29

I 94 -0.16 -0.04 -0.02 0.59

II 94 1.22 1.27 1.25 0.98

III 94 4.38 4.34 4.32 4.72

IV 94 1.28 1.37 1.35 1.16

I 95 0.77 0.84 0.81 1.42

II 95 1.77 1.9 1.83 1.84

III 95 1.5 1.44 1.47 1.53

IV 95 1.34 1.38 1.37 1.33

I 96 3.69 3.79 3.84 4.47

II 96 3.81 4.01 4.04 4.35

III 96 0.93 1.14 1.11 1.48

IV 96 3.62 3.85 3.86 4.62

I 97 2.36 2.28 2.34 2.04

II 97 0 -0.14 -0.16 -1.74

Overall Difference Fixed Weight Scope Adjustment Residual

(1) (2) (3) (4) (5)

Difference I 92 0.12 0.05 0.00 0.07

Analysis II 92 0.33 -0.03 0.03 0.33

III 92 0.12 -0.17 -0.08 0.37

IV 92 0.07 0.12 0.04 -0.09

I 93 1.03 -0.06 0.06 1.03

II 93 0.52 0.11 -0.04 0.45

III 93 -1.06 -0.09 -0.02 -0.95

IV 93 -0.36 -0.14 0.06 -0.28

I 94 0.75 0.12 0.02 0.61

II 94 -0.24 0.05 -0.02 -0.27

III 94 0.34 -0.04 -0.02 0.40

IV 94 -0.12 0.09 -0.02 -0.19

I 95 0.65 0.07 -0.03 0.61

II 95 0.07 0.13 -0.07 0.01

III 95 0.03 -0.06 0.03 0.06

IV 95 -0.01 0.04 -0.01 -0.04

I 96 0.78 0.10 0.05 0.63

II 96 0.54 0.20 0.03 0.31

III 96 0.55 0.21 -0.03 0.37

IV 96 1.00 0.23 0.01 0.76

I 97 -0.32 -0.08 0.06 -0.30

II 97 -1.74 -0.14 -0.02 -1.58

Average 0.14 0.03 0.00 0.10

St. Dev. 0.65 0.12 0.04 0.58
Page 19

Table 4.

Summary of Adjustments to PCE Deflator Services (Line 182 of Table 206I)

BEA Fixed Weight Scope Correction CPI

(1) (2) (3) (4) (5)

Inflation Rates I 92 4.93 5.09 4.54 3.89

II 92 4.06 3.8 3.38 3.57

III 92 2.81 2.81 2.29 3.09

IV 92 4.79 4.72 5.6 4.34

I 93 3.63 3.67 4.19 3.79

II 93 3.55 3.54 3.72 4.06

III 93 2.32 2.34 3.01 3.44

IV 93 3.31 3.42 3.03 3.53

I 94 2.71 2.67 3.25 3.34

II 94 3.22 3.37 2.63 2.90

III 94 3.35 3.29 2.5 3.03

IV 94 3.84 3.94 2.66 3.01

I 95 4.06 4.12 4.06 3.80

II 95 3.11 3.28 2.78 3.76

III 95 2.61 2.66 2.6 2.86

IV 95 2.27 2.33 2.68 3.23

I 96 2.47 2.58 2.75 3.06

II 96 3.31 3.46 3.03 3.32

III 96 3.85 4.04 2.68 3.44

IV 96 3.4 3.5 3.33 3.13

I 97 2.64 2.81 3.08 2.97

II 97 2.24 2.25 2.34 2.84

Overall Difference Fixed Weight Scope Adjustment Residual

(1) (2) (3) (4) (5)

Difference I 92 -1.04 0.16 -0.55 -0.65

Analysis II 92 -0.49 -0.26 -0.42 0.19

III 92 0.28 0.00 -0.52 0.80

IV 92 -0.45 -0.07 0.88 -1.26

I 93 0.16 0.04 0.52 -0.40

II 93 0.51 -0.01 0.18 0.34

III 93 1.12 0.02 0.67 0.43

IV 93 0.22 0.11 -0.39 0.50

I 94 0.63 -0.04 0.58 0.09

II 94 -0.32 0.15 -0.74 0.27

III 94 -0.32 -0.06 -0.79 0.53

IV 94 -0.83 0.10 -1.28 0.35

I 95 -0.26 0.06 -0.06 -0.26

II 95 0.65 0.17 -0.50 0.98

III 95 0.25 0.05 -0.06 0.26

IV 95 0.96 0.06 0.35 0.55

I 96 0.59 0.11 0.17 0.31

II 96 0.01 0.15 -0.43 0.29

III 96 -0.41 0.19 -1.36 0.76

IV 96 -0.27 0.10 -0.17 -0.20

I 97 0.33 0.17 0.27 -0.11

II 97 0.60 0.01 0.09 0.50

Average 0.09 0.06 -0.16 0.19

St. Dev. 0.57 0.11 0.60 0.51
Page 20

Table 5.

Large Differences in Weights

(in Percentage Points)

CPI ID Title 100*dw

SE2201 OWNERS' EQUIVALENT RENT 7.22

SE4501 NEW CARS 1.86

SE50 AUTOMOBILE INSURANCE 1.83

SE2101 RENT OF DWELLING 1.66

SE2102 LODGING WHILE OUT OF TOWN 1.52

SE5604 SERVICES BY OTHER MED. PROFESSIONALS -1.89

SE5601 PHYSICIANS' SERVICES -2.63

SE57 HOSPITAL AND RELATED SERVICES -6.39

Table 6.

Largest Weight Effects

(in Index Points)

CPI ID Title PdW

SE57 HOSPITAL AND RELATED SERVICES -1.002

SE5601 PHYSICIANS' SERVICES -0.228

SE6802 PERSONAL FINANCIAL SERVICES -0.112

SE58 HEALTH INSURANCE -0.080

SE4501 NEW CARS -0.067

SE3103 SOUND EQUIPMENT 0.051

SE43 WATCHES AND JEWELRY 0.052

SE28 TEXTILE HOUSEFURNISHINGS 0.053

SE5301 AIRLINE FARE 0.054

SE6002 OTHER SPORTING GOODS 0.056

SE46 USED CARS 0.067

SE3101 TELEVISION 0.068

SE3102 OTHER VIDEO EQUIPMENT 0.082

SE69 INFORMATION PROCESSING EQUIPMENT 0.097

SE2102 LODGING WHILE OUT OF TOWN 0.110

SE50 AUTOMOBILE INSURANCE 0.148

SE2201 OWNERS' EQUIVALENT RENT 0.172
Page 21

Table 7.

Largest Differences in Component Price Indexes (in Index points)

BEA Line

Number

BEA Line Title dP

231 Intercity railways -12.49

190 Tenant landlord durables -10.65

155 Semi-durable house furnishings -8.61

166 Stationery & school supplies -6.46

167 Greeting cards -6.46

282 Clubs & fraternal organizations -5.32

88 Pleasure aircraft -3.92

211 Domestic service, cash -3.87

229 Taxicab -2.96

214 Moving & storage -2.00

222 Household operation NEC -1.99

228 Net auto insurance premiums -1.14

185 Owner occupied mobile home 0.96

186 Owner occupied station homes 0.97

196 Elem. & second education housing 1.24

93 Beef & veal 1.59

95 Other meat 1.73

110 Fish & seafood 1.79

98 Poultry 1.83

94 Pork 1.89

101 Fresh vegetables 1.94

174 Lighting supplies 1.98

100 Fresh fruit 2.05

99 Eggs 2.06

147 LP gas & other fuel 2.85

70 Textile products 5.32

236 Physicians 5.41

232 Intercity buses 6.17

244 Nursing homes 8.54

309 Commercial & vocational schools 10.06

307 Nursery schools 11.27

241 For-profit hospitals 12.00

243 Government hospitals 12.06

242 Nonprofit hospitals 15.21

299 Video cassette rental 16.50

306 Elementary & secondary schools 17.19

303 Private higher education 20.37

233 Airline 23.09

65 PCE computers 34.44
Page 22

Table 8.

Largest Price Effects (In Index Points)

BEA Line

Number

BEA Line Title WdP

155 Semi-durable house furnishings -0.0526

189 Tenant occupied station homes -0.0201

282 Clubs & fraternal organizations -0.0144

190 Tenant landlord durables -0.0118

166 Stationery & school supplies -0.0115

167 Greeting cards -0.0115

211 Domestic service, cash -0.0100

94 Pork 0.0098

93 Beef & veal 0.0119

307 Nursery schools 0.0125

299 Video cassette rental 0.0262

309 Commercial & vocational schools 0.0363

306 Elementary & secondary schools 0.0681

241 For-profit hospitals 0.0951

65 PCE computers 0.1074

186 Owner occupied station homes 0.1126

244 Nursing homes 0.1148

233 Airline 0.1412

303 Private higher education 0.1521

243 Government hospitals 0.1749

236 Physicians 0.2380

242 Nonprofit hospitals 0.7343

Table 9.

Cumulative Difference, 1992-II 97.

1 CPI, 1992 Annual Average: 140.32

2 CPI, II 97 (Ave. of SA) 160.13

3 Implied II 97 CPI, 1992=100 114.12

4 PCE Deflator, II 97 112.47

5 Total Difference in Index Points (3) - (4) 1.65

6 Fixed Weight Index Using 1992 PCE Weights 113.33

7 Formula Effect (6)-(4) 0.86

8 Scope Adjusted Fixed Weight Index 112.32

9 Scope Effect (8)-(6) -1.01

10 CPI-Scope Adjusted FW Index (3) - (8) 1.80

11 Weight Effect -0.16

12 Price Effect 1.97

13 Unexplained Residual -0.01
Table A.1 CPI-PCE Concordance

PCE Line TITLE Source for Prices

Map To 

CPI Line:

39 New domestic autos SE4501 SE4501

40 New foreign autos SE4501 SE4501

42 Net transactions in used autos SE46 SE46

46 Pce trucks SE4502 SE4502

47 Recreational vehicles SE6001 SE6001

49 Tires & tubes SE4801 SE4801

50 Accessories & parts SE4802 SE4802

52 Furniture SE29 SE29

54 Major household appliances SE30 SE30

55 Small electric appliances SE3205 SE3205

56 China & glaswr, tablwr & ut SE3203 SE3203

59 Televisions SE3101 SE3101

60 Other video eqpt SE3102 SE3102

62 Audio eqpt SE3103 SE3103

63 Records, tapes, & disks SE3103 SE3103

64 Musical instruments SE6101 SE6101

65 Pce computers BEA SE69

67 Floor coverings SE3201 SE3201

69 Clocks, lamps, & artwork SE3202 SE3202

70 Textile products SS2801a SE28

71 Writing eqpt SE66 SE66

73 Hardware, tools SE3204 SE3204

74 Lawn & garden tools SE3204 SE3204

76 Jewelry & watches SE43 SE43

77 Opthalmic & orthopedic eqpt SE5603 SE5603

78 Books & maps SE5902 SE5902

81 Guns SE6002 SE6002

82 Sporting eqpt SE6002 SE6002

83 Bicycles SE6001 SE6001

84 Motorcycles SE4503 SE4503

85 Cameras SE6102 SE6102

87 Boats SE6001 SE6001

88 Pleasure aircraft SE6002 SE6002

93 Beef & veal SE03 SE03

94 Pork SE04 SE04

95 Other meat SE05 SE05

96 Fresh milk & cream SE09 SE09

97 Processed dairy products SE10 SE10

98 Poultry SE06 SE06

99 Eggs SE08 SE08

100 Fresh fruit SE11 SE11

101 Fresh vegetables SE12 SE12

102 Processed fruit SE13 SE13

103 Processed vegetables SE14 SE14

104 Cereals SE01 SE01

105 Bakery products SE02 SE02

106 Fats & oils SE16 SE16

107 Sugar & sweets SE15 SE15

108 Nonalcoholic beverages SE17 SE17

Page 22
Table A.1 CPI-PCE Concordance

109 Other prepared food SE18 SE18

110 Fish & seafood SE07 SE07

111 Pet food SE6103 SE6103

113 Distilled spirits SE2002 SE2002

114 Wine & brandy SE2003 SE2003

115 Beer & ale SE2001 SE2001

118 Elem & second school lunch SE19 SE19

119 Higher ed school lunch SE19 SE19

120 Other purchased meals SE19 SE19

121 Alcohol in purchased meals SE2005 SE2005

128 Footwear SE40 SE40

131 Women's & girls' clothing SA3112 SA3112

132 Infants' clothing SE41 SE41

133 Women's sewing goods SE4201 SE42

134 Womens luggage SE42013 SE42

137 Men's & boys' clothing SA3111 SA3111

138 Men's sewing goods SE4201 SE42

139 Mens luggage SA42013 SE42

142 Gasoline & other motor fuel SE4701 SE4701

143 Lubricants SE4702 SE4702

146 Fuel oil SE2501 SE2501

147 Lp gas & other fuel SE2502 SE2502

150 Tobacco SE63 SE63

155 Semi-durable house furnishi SS2801b SE28

157 Prescription drugs SE54 SE54

158 Nonprescription drugs SE5502 SE5502

159 Medical supplies SE5503 SE5503

160 Gynecological products SE6401 SE6401

162 Soap SE3301 SE3301

163 Cosmetics SE6403 SE6403

164 Other personal hygiene products SE6401 SE6401

166 Stationery & school supplies SE33032 SE3303

167 Greeting cards SE33032 SE3303

169 Ammunition SE6002 SE6002

170 Film SE6102 SE6102

171 Toys, dolls, & games SE6101 SE6101

172 Flowers seeds & potted plants SE3206 SE3206

174 Lighting supplies SE33051 SE3305

175 Cleaning preparations SE3301 SE3301

176 Paper products SE3303 SE3303

178 Newspapers SE5901 SE5901

179 Magazines SE5902 SE5902

185 Owner occupied mobile home SE2201 SE2201

186 Owner occupied station homes SE2201 SE2201

188 Tenant occupied mobile homes SE2101 SE2101

189 Tenant occupied station homes SE2101 SE2101

190 Tenant landlord durables SE30 SE30

193 Hotels & motels SE2102 SE2102

194 Clubs & fraternity housing SE2101 SE2101

195 Higher education housing SE2103 SE2103

196 Elem & second educat housing SE2103 SE2103

Page 23
Table A.1 CPI-PCE Concordance

201 Electricity SE2601 SE2601

202 Natural gas SE2602 SE2602

204 Water & sewerage maintenance SE2702 SE2702

205 Refuse collection SE2704 SE2704

207 Local telephone SE2701 SE2701

208 Intrastate toll calls SE2706 SE2706

209 Interstate toll calls SE2705 SE2705

211 Domestic service, cash BEA SE3403

212 Domestic service, in kind SA111 SA111

214 Moving & storage Unpublished CPI SE3404

216 HH insurance premiums SE35 SE35

217 Less: HH insur benefits paid SA231 SA231

218 Rug & furniture cleaning SE4402 SE4402

219 Electrical repair SE3406 SE3406

220 Reupholstery & furniture repair SE3406 SE3406

221 Postage SE3401 SE3401

222 Household operation nec Unpublished CPI SE3404

225 Auto repair SE49 SE49

226 Auto rental, leasing & other SE5205 SE5205

227 Bridge & road tolls SE5205 SE5205

228 Net auto insurance premiums BEA SE50

229 Taxicab SS53032 SE5303

230 Mass transit systems SS53031 SE5303

231 Intercity railways SS53022 SE5302

232 Intercity buses SS53021 SE5302

233 Airline BEA SE5301

234 Other transportation services SE53 SE53

236 Physicians PPI "... Doctors ..." SE5601

237 Dentists SE5602 SE5602

238 Other professional medical SE5604 SE5604

241 For-profit hospitals PPI "Hospitals" SE57

242 Nonprofit hospitals BEA SE57

243 Government hospitals PPI "Hospitals" SE57

244 Nursing homes BEA SE57

246 Medical & hospital insurance BEA SE58

250 Shoe repair SE4401 SE4401

252 Drycleaning SE4402 SE4402

253 Laundry & garment repair SE4402 SE4402

255 Watch, clock, & jewelry repair SE4401 SE4401

256 Miscellaneous personal services SE4402 SE4402

258 Beauty shops, incl combination SE6501 SE6501

259 Barber shops SE6502 SE6502

262 Bank service charges SE6802 SE6802

267 Legal services SE6801 SE6801

268 Funeral & burial expenses SE6803 SE6803

272 Employ agency fees SE6802 SE6802

273 Money orders SE6802 SE6802

274 Classified ads SE6802 SE6802

275 Tax return prep services SE6802 SE6802

276 Other personal business SE6801 SE6801

278 Repair of audio & video eqpt SE3406 SE3406

Page 24
Table A.1 CPI-PCE Concordance

279 Motion picture admissions SE6203 SE6203

280 Live entertain excl. sports SE6203 SE6203

281 Spectator sports SE6203 SE6203

282 Clubs & fraternal organizations BEA SE6201

284 Sightseeing SE6205 SE6205

285 Private flying SE6205 SE6205

286 Bowling & billiards SE6202 SE6202

288 Other comml participant amuse SE6205 SE6205

291 Pets & pets services excl. vets SE6103 SE6103

292 Veterinarians SE6103 SE6103

293 Cable tv SE2703 SE2703

294 Film developing SE6205 SE6205

295 Photo studios SE6205 SE6205

296 Sporting & recreational camps SE6205 SE6205

297 High school recreation SE6205 SE6205

299 Video cassette rental BEA SE6205

300 Commercial amusements nec SE6205 SE6205

303 Private higher education BEA SE6701

304 Public higher education SE6701 SE6701

306 Elementary & secondary schools BEA SE6702

307 Nursery schools BEA SE6703

309 Commercial & vocational schoolsBEA SE6704

Page 25
Table A.2 PCE Aggregation Tree

PCE Line

1 All Items PCE

36 PCE durable goods

37 Motor vehicles & parts

38 New autos

39 New domestic autos

40 New foreign autos

41 Net purchases of used autos

42 Net transactions in used autos

43 Used auto margin

44 Employee reimbursement

45 Other motor vehicles

46 Pce trucks

47 Recreational vehicles

48 Tires tubes acc & parts

49 Tires & tubes

50 Accessories & parts

51 Furniture & household eqpt

52 Furniture

53 Kitchen & hh appliances

54 Major household appliances

55 Small electric appliances

56 China & glaswr, tablwr & ut

57 Video & audio, computers&m

58 Tvs, vcrs, videotapes

59 Televisions

60 Other video eqpt

61 Audio eqpt, media, instrum

62 Audio eqpt

63 Records, tapes, & disks

64 Musical instruments

65 Pce computers

66 Other dur housefurnish

67 Floor coverings

68 Durable housefurnishing

69 Clocks, lamps, & artwork

70 Textile products

71 Writing eqpt

72 Hand tools

73 Hardware, tools

74 Lawn & garden tools

75 Other durables

76 Jewelry & watches

77 Opthalmic & orthopedic eqpt

78 Books & maps

79 Wheel goods, sports, photo

80 Wheel goods

81 Guns

82 Sporting eqpt

83 Bicycles

84 Motorcycles

Page 26
Table A.2 PCE Aggregation Tree

85 Cameras

86 Pce boats & aircraft

87 Boats

88 Pleasure aircraft

89 PCE nondurable goods

90 Food

91 Food pur for off-prem consum

92 Food in off prem food

93 Beef & veal

94 Pork

95 Other meat

96 Fresh milk & cream

97 Processed dairy products

98 Poultry

99 Eggs

100 Fresh fruit

101 Fresh vegetables

102 Processed fruit

103 Processed vegetables

104 Cereals

105 Bakery products

106 Fats & oils

107 Sugar & sweets

108 Nonalcoholic beverages

109 Other prepared food

110 Fish & seafood

111 Pet food

112 Alcohol in off premise

113 Distilled spirits

114 Wine & brandy

115 Beer & ale

116 Purchased meals & beverages

117 Food in purchased meals

118 Elem & second school lunch

119 Higher ed school lunch

120 Other purchased meals

121 Alcohol in purchased meals

122 Food furnished employees

123 Food supplied civilians

124 Food supplied military

125 Food on farms

126 Addenda: PCE food less alcohol

127 Total clothing & shoes

128 Footwear

129 Women's & girls' cloth & lugg

130 Women's & girls' clothing x lug

131 Women's & girls' clothing

132 Infants' clothing

133 Women's sewing goods

134 Womens luggage

135 Men's & boys' cloth & luggage

Page 27
Table A.2 PCE Aggregation Tree

136 Men's & boys' clothing x luggage

137 Men's & boys' clothing

138 Men's sewing goods

139 Mens luggage

140 Military clothing

141 Gasoline & oil

142 Gasoline & other motor fuel

143 Lubricants

144 Fuel oil & coal

145 Purchased fuel

146 Fuel oil

147 Lp gas & other fuel

148 Farm fuel

149 Other nondurables

150 Tobacco

151 Expenditures abroad

152 Govt expenditures abroad

153 Nongovernment expenditures

154 Less: remittances in kind

155 Semi-durable house furnishi

156 Drug preps & sundries

157 Prescription drugs

158 Nonprescription drugs

159 Medical supplies

160 Gynecological products

161 Toilet articles & preps

162 Soap

163 Cosmetics

164 Other personal hygiene products

165 Stationery & writing supplies

166 Stationery & school supplies

167 Greeting cards

168 Nondurable toys & sport eqp

169 Ammunition

170 Film

171 Toys, dolls, & games

172 Flowers seeds & potted plants

173 Cleaning lighting paper

174 Lighting supplies

175 Cleaning preparations

176 Paper products

177 Magazines & newspapers

178 Newspapers

179 Magazines

180 Addenda: total goods

181 Addenda: pce control & gas

182 PCE services

183 Housing services

184 Owner occupied nonfrm space

185 Owner occupied mobile home

186 Owner occupied station homes

Page 28
Table A.2 PCE Aggregation Tree

187 Tenant occupied nonfrm spac

188 Tenant occupied mobile homes

189 Tenant occupied station homes

190 Tenant landlord durables

191 Rental value farm housing

192 Other housing

193 Hotels & motels

194 Clubs & fraternity housing

195 Higher education housing

196 Elem & second educat housing

197 Tenant group room & board

198 Tenant group employee lodging

199 Household operation services

200 Electricity & gas

201 Electricity

202 Natural gas

203 Water & sanitary services

204 Water & sewerage maintenance

205 Refuse collection

206 Telephone & telegraph

207 Local telephone

208 Intrastate toll calls

209 Interstate toll calls

210 Domestic services

211 Domestic service, cash

212 Domestic service, in kind

213 Other household operation

214 Moving & storage

215 Household insurance

216 HH insurance premiums

217 Less: HH insur benefits paid

218 Rug & furniture cleaning

219 Electrical repair

220 Reupholstery & furniture repair

221 Postage

222 Household operation nec

223 Transportation services

224 Auto repair, rental & other

225 Auto repair

226 Auto rental, leasing & other

227 Bridge & road tolls

228 Net auto insurance premiums

229 Taxicab

230 Mass transit systems

231 Intercity railways

232 Intercity buses

233 Airline

234 Other transportation services

235 Medical care services

236 Physicians

237 Dentists

Page 29
Table A.2 PCE Aggregation Tree

238 Other professional medical

239 Hospitals & nursing homes

240 Hospitals

241 For-profit hospitals

242 Nonprofit hospitals

243 Government hospitals

244 Nursing homes

245 Health insurance

246 Medical & hospital insurance

247 Income loss insurance

248 Workers' compensation

249 Personal care services

250 Shoe repair

251 Cleaning, laundering, & c

252 Drycleaning

253 Laundry & garment repair

254 Other clothing repair

255 Watch, clock, & jewelry repair

256 Miscellaneous personal services

257 Barbershops, beauty, & health

258 Beauty shops, incl combination

259 Barber shops

260 Personal business services

261 Brokerage & invest counsel

262 Bank service charges

263 Imputed service charges

264 Commercial banks

265 Other financial institutions

266 Expense of handlng life ins

267 Legal services

268 Funeral & burial expenses

269 Other personal business

270 Labor union expenses

271 Profession. assoc. expenses

272 Employ agency fees

273 Money orders

274 Classified ads

275 Tax return prep services

276 Other personal business

277 Recreational services

278 Repair of audio & video eqpt

279 Motion picture admissions

280 Live entertain excl. sports

281 Spectator sports

282 Clubs & fraternal organizations

283 Commercial participant amuse

284 Sightseeing

285 Private flying

286 Bowling & billiards

287 Casino gambling

288 Other comml participant amuse

Page 30
Table A.2 PCE Aggregation Tree

289 Pari-mutuel net receipts

290 Other recreation

291 Pets & pets services excl. vets

292 Veterinarians

293 Cable tv

294 Film developing

295 Photo studios

296 Sporting & recreational camps

297 High school recreation

298 Lotteries

299 Video cassette rental

300 Commercial amusements nec

301 Education & research

302 Higher education

303 Private higher education

304 Public higher education

305 Private lower education

306 Elementary & secondary schools

307 Nursery schools

308 Other education & research

309 Commercial & vocational schools

310 Foundations & nonprofit research

311 Religious & welfare

312 Political organizations

313 Museums & libraries

314 Foundations to religion & welfare

315 Social welfare

316 Religion

317 Net foreign travel

318 Foreign travel by U.S. residents

319 Air fares foreign travel

320 U.S. travel outside the U.S.

321 U.S. student expenditures

322 Less: exp in U.S. by foreig

323 Foreign travel in U.S.

324 Medical exp of foreigners

325 Exp of foreign students in U.S.

Page 31
Table A.3 CPI Aggregation Tree

Line Titles:

1 SA0 ALL ITEMS

2 SA1 FOOD AND BEVERAGES

3 SA11 FOOD

4 SA111 FOOD AT HOME

5 SA1111 CEREALS AND BAKERY PRODUCTS

6 SE01 CEREALS AND CEREAL PRODUCTS

7 SE0101 FLOUR,PREP FLOUR MIXES

8 SE0102 CEREAL

9 SE0103 RICE,PASTA,CORNMEAL

10 SE02 BAKERY PRODUCTS

11 SE0201 WHITE BREAD

12 SE0202 FRESH OTH BREADS/BISC/ROLLS/MUFFINS

13 SE0204 COOKIES, FRESH CAKES & CUPCAKES

14 SE0206 OTHER BAKERY PRODUCTS

15 SA1112 MEATS, POULTRY, FISH AND EGGS

16 SA11121 MEATS, POULTRY, AND FISH

17 SA111211 MEATS

18 SE03 BEEF AND VEAL

19 SE0301 GROUND BEEF EXCLUDE CANNED

20 SE0302 CHUCK ROAST

21 SE0303 ROUND ROAST

22 SE0304 OTHER BEEF AND VEAL

23 SE0305 ROUND STEAK

24 SE0306 SIRLOIN STEAK

25 SE04 PORK

26 SE0401 BACON

27 SE0402 PORK CHOPS

28 SE0403 HAM

29 SE0404 OTHER PORK INCL SAUSAGE

30 SE05 OTHER MEATS

31 SE0501 OTHER MEATS*

32 SE06 POULTRY

33 SE0601 FRESH WHOLE CHICKEN

34 SE0602 FRESH/FROZEN CHICKEN PARTS

35 SE0603 OTHER POULTRY

36 SE07 FISH AND SEAFOOD

37 SE0701 CANNED FISH,SEAFOOD

38 SE0702 FRESH/FROZEN FISH,SEAFOOD

39 SE08 EGGS

40 SE0801 EGGS*

41 SA1113 DAIRY PRODUCTS

42 SE09 FRESH MILK AND CREAM

43 SE0901 FRESH WHOLE MILK

44 SE0902 OTHER FRESH MILK AND CREAM

45 SE10 PROCESSED DAIRY PRODUCTS

46 SE1001 OTHER DAIRY PRODUCTS INCL BUTTER

47 SE1002 CHEESE

48 SE1004 ICE CREAM,RELATED PROD.

49 SA1114 FRUITS AND VEGETABLES

50 SA11141 FRESH FRUITS AND VEGETABLES

Page 32
Table A.3 CPI Aggregation Tree

51 SE11 FRESH FRUITS

52 SE1101 APPLES

53 SE1102 BANANAS

54 SE1103 ORANGES INCLUDING TANGERINES

55 SE1104 OTHER FRESH FRUITS

56 SE12 FRESH VEGETABLES

57 SE1201 POTATOES

58 SE1202 LETTUCE

59 SE1203 TOMATOES

60 SE1204 OTHER FRESH VEGETABLES

61 SA11142 PROCESSED FRUITS AND VEGETABLES

62 SE13 PROCESSED FRUITS

63 SE1301 FRUIT JUICES, & FROZEN FRUIT

64 SE1303 CANNED AND DRIED FRUITS

65 SE14 PROCESSED VEGETABLES

66 SE1401 FROZEN VEGETABLES

67 SE1402 PROCESSED VEGETABLES EXCLUDING FROZEN

68 SA1115 OTHER FOOD AT HOME

69 SE15 SUGAR AND SWEETS

70 SE1501 SWEETS INCLUDING CANDY

71 SE1502 SUGAR AND ARTIFICIAL SWEETNERS

72 SE16 FATS AND OILS

73 SE1601 FATS AND OILS*

74 SE17 NONALCOHOLIC BEVERAGES

75 SE1701 CARBONATED DRINKS

76 SE1703 COFFEE

77 SE1705 OTH NONCARBONATED DRINKS

78 SE18 OTHER PREPARED FOODS

79 SE1801 CANNED PACKAGED SOUP

80 SE1802 FROZEN PREPARED FOODS

81 SE1803 SNACKS

82 SE1804 SEASNGS/CONDIMENTS/SAUCES/GRAVIES

83 SE1806 MISC. PREPARED FOODS INCL. BABY FOOD

84 SE19 FOOD AWAY FROM HOME

85 SE1901 LUNCH

86 SE1902 DINNER

87 SE1903 OTHER MEALS AND SNACKS

88 SE1909 UNPRICED ITEMS

89 SE20 ALCOHOLIC BEVERAGES

90 SE200A ALCOHOLIC BEVERAGES AT HOME

91 SE2001 BEER AND ALE AT HOME

92 SE2002 DISTILLED SPIRITS AT HOME

93 SE2003 WINE AT HOME

94 SE2005 ALCOHOLIC BEV AWAY FROM HOME

95 SA2 HOUSING

96 SA21 SHELTER

97 SA211 RENTERS' COSTS

98 SE2101 RENT OF DWELLING

99 SA2112 OTHER RENTERS' COSTS

100 SE2102 LODGING WHILE OUT OF TOWN

101 SE2103 LODGING WHILE AT SCHOOL

Page 33
Table A.3 CPI Aggregation Tree

102 SE35 TENANTS' INSURANCE

103 SE3501 TENANTS' INSURANCE*

104 SE22 HOMEOWNERS' COSTS

105 SE2201 OWNERS' EQUIVALENT RENT

106 SE2202 HOUSEHOLD INSURANCE

107 SA213 MAINTENANCE AND REPAIRS

108 SE23 MAINTENANCE AND REPAIR SERVICES

109 SE2301 MAINTENANCE AND REPAIR SERVICES*

110 SE24 MAINTENANCE AND REPAIR COMMOD.

111 SE2401 MATERIALS, SUPP & EQUIP FOR HM REPS

112 SE2404 OTHER MAINTENANCE & REPAIR COMMOD.

113 SA22 HOUSEHOLD FUELS AND OTHER UTILITIES

114 SA221 HOUSEHOLD FUELS

115 SE25 FUEL OIL & OTHER HOUSEHOLD FUEL COMMODITIES

116 SE2501 FUEL OIL

117 SE2502 OTHER HOUSEHOLD FUEL COMMOD.

118 SE26 GAS (PIPED) AND ELECTRICITY

119 SE2601 ELECTRICITY

120 SE2602 UTILITY (PIPED) GAS

121 SE27 OTHER UTIL AND PUBLIC SERVICES

122 SE270A TELEPHONE SERVICES

123 SE2701 TELEPHONE- MAIN STATN SERV

124 SE270B OTHER UTIL AND PUBLIC SER EXCL TELE

125 SE2702 WATER/SEWERAGE MAINTENANCE

126 SE2703 COMMUNITY ANTENNA,CABLE TV

127 SE2704 GARBAGE/TRASH COLLECTION

128 SE2705 TELE.INTERSTATE TOLL CALL

129 SE2706 TELE.INTRASTATE TOLL CALL

130 SA23 HOUSEHOLD FURNISHINGS & OPERATION

131 SA231 HOUSEFURNISHINGS

132 SE28 TEXTILE HOUSEFURNISHINGS

133 SE2801 TEXTILE HOUSEFURNISHINGS*

134 SE29 FURNITURE AND BEDDING

135 SE2901 BEDROOM FURNITURE

136 SE2902 SOFAS

137 SE2903 LIVING ROOM CHAIRS, TABLES

138 SE2904 OTHER FURNITURE

139 SA2313 APPLIANCES & ELECTRONIC EQUIPMENT

140 SE31 TV AND SOUND EQUIPMENT

141 SE3101 TELEVISION

142 SE3102 OTHER VIDEO EQUIPMENT

143 SE3103 SOUND EQUIPMENT

144 SE3109 UNPRICED ITEMS

145 SE30 MAJOR HOUSEHOLD APPLIANCES

146 SE3001 REFRIGERATOR, HOME FREEZER

147 SE3002 LAUNDRY EQUIPMENT

148 SE3003 STOVES/OVENS/DSHWHRS/AIR CONDS

149 SE69 INFORMATION PROCESSING EQUIPMENT

150 SE6901 INFORMATION PROCESSING EQUIPMENT*

151 SE32 OTHER HOUSEFURNISHINGS

152 SE3201 FL/WDW CV,IN/LDY/CL/OD EQ

Page 34
Table A.3 CPI Aggregation Tree

153 SE3202 CLOCKS,LAMPS, AND DECOR ITEMS

154 SE3203 TBLWR,SRV PCS,NONEL KTNWR

155 SE3204 LAWN EQ, POWER TOOLS & OTH HRDW

156 SE3205 SEWING MACH & PORTABLE HEATING EQUIP

157 SE3206 INDOOR PLANTS & FRESH CUT FLOWERS

158 SE3209 UNPRICED ITEMS

159 SE33 HOUSEKEEPING SUPPLIES

160 SE3301 LAUNDRY & CLNING PRODUCTS INCL SOAP

161 SE3303 HOUSEHOLD PAPER PROD & STNRY SUPPLIES

162 SE3305 MISC HOUSEHOLD PRODUCTS

163 SE34 HOUSEKEEPING SERVICES

164 SE3401 POSTAGE

165 SE3402 BABYSITTING

166 SE3403 DOMESTIC SERVICE

167 SE3404 GARDENING,OTH HOME SERV.

168 SE3406 APPLIANCE AND FURNITURE REPAIR

169 SE3407 CARE OF INVALIDS/ELDERLY/CONVALES

170 SE3409 UNPRICED ITEMS

171 SA3 APPAREL AND UPKEEP

172 SA31 APPAREL COMMODITIES

173 SA311 APPAREL COMMODITIES LESS FOOTWEAR

174 SA3111 MEN'S AND BOY'S APPAREL

175 SE36 MEN'S APPAREL

176 SE3601 MEN'S SUITS, SPT CTS, CTS & JCKTS

177 SE3603 MEN'S FURN. & SPEC. CLOTHING

178 SE3604 MEN'S SHIRTS

179 SE3605 MEN'S DNGREES, JEANS, TRSRS

180 SE3609 UNPRICED ITEMS

181 SE37 BOYS' APPAREL

182 SE3701 BOYS' APPAREL

183 SE3709 UNPRICED ITEMS

184 SA3112 WOMEN'S AND GIRL'S APPAREL

185 SE38 WOMEN'S APPAREL

186 SE3801 WOMEN'S COATS AND JACKETS

187 SE3802 WOMEN'S DRESSES

188 SE3803 WOMEN'S SEPARATES & SPORTSWEAR

189 SE3804 WOMEN'S NGHTWR,UNDWR,HSRY,ACCESSORIES

190 SE3805 WOMEN'S SUITS

191 SE3809 UNPRICED ITEMS

192 SE39 GIRLS' APPAREL

193 SE3901 GIRLS' APPAREL

194 SE3909 UNPRICED ITEMS

195 SE41 INFANTS',TODDLERS'APPAREL

196 SE4101 INFANTS' & TODDLERS' APPAREL

197 SE4109 UNPRICED ITEMS

198 SA3114 OTHER APPAREL COMMODITIES

199 SE42 SEWING MATERIALS,NOTIONS & LUGGAGE

200 SE4201 SEWING MATERIALS,NOTIONS & LUGGAGE*

201 SE43 WATCHES AND JEWELRY

202 SE4301 WATCHES

203 SE4302 JEWELRY

Page 35
Table A.3 CPI Aggregation Tree

204 SE40 FOOTWEAR

205 SE4001 MEN'S FOOTWEAR

206 SE4002 BOYS' AND GIRLS' FOOTWEAR

207 SE4003 WOMEN'S FOOTWEAR

208 SE44 APPAREL SERVICES

209 SE4401 OTHER APPAREL SERVICES

210 SE4402 OTH LNDRY,DRY CL-APPAREL

211 SA4 TRANSPORTATION

212 SA41 PRIVATE TRANSPORTATION

213 SE45 NEW VEHICLES

214 SE4501 NEW CARS

215 SE4502 NEW TRUCKS

216 SE4503 NEW MOTORCYCLES

217 SE46 USED CARS

218 SE4601 USED CARS

219 SE4609 UNPRICED ITEMS

220 SE4701 MOTOR FUEL

221 SE49 AUTOMOBILE MAINTENANCE AND REPAIR

222 SE4901 AUTOMOTIVE BODY WORK

223 SE4902 AUTO DRIVE TRAIN,FRONT END REP.

224 SE4903 AUTO MAINTENANCE AND SERVICING

225 SE4904 AUTO POWER PLANT REPAIR

226 SE4909 UNPRICED ITEMS

227 SA415 OTHER PRIVATE TRANSPORTATION

228 SA4151 OTHER PRIVATE TRANS. COMMODITIES

229 SE4702 MOTOR OIL, COOLANT, AND OTHERS

230 SE48 AUTOMOBILE PARTS AND EQUIPMENT

231 SE4801 TIRES

232 SE4802 OTHER PARTS AND EQUIPMENT

233 SA4152 OTH PRIVATE TRANS. SERVICES

234 SE50 AUTOMOBILE INSURANCE

235 SE5001 AUTOMOBILE INSURANCE*

236 SE51 AUTOMOBILE FINANCE CHARGES

237 SE5101 AUTO FINANCE CHARGES

238 SE5109 UNPRICED ITEMS

239 SE52 VEHICL RENTL,REGISTR,OTHR

240 SE5201 AUTO REGISTR, LICEN & INSPEC FEES

241 SE5205 OTHER AUTOMOBILE RELATED FEES

242 SE5209 UNPRICED ITEMS

243 SE53 PUBLIC TRANSPORTATION

244 SE5301 AIRLINE FARE

245 SE5302 OTHER INTERCITY PUBLIC TRANSPORTATION

246 SE5303 INTRACITY PUBLIC TRANSPORTATION

247 SE5309 UNPRICED ITEMS

248 SA5 MEDICAL CARE

249 SA51 MEDICAL CARE COMMODITIES

250 SE54 PRESCRIPTION DRUGS

251 SE5401 PRESCRIPTION DRUGS*

252 SE55 NONPRESC DRUGS,MED SUPPLS

253 SE5502 INT & RESP OVER-THE-COUNTER ITEM

254 SE5503 NONPRSCRPT MED EQUIP, SUPP

Page 36
Table A.3 CPI Aggregation Tree

255 SA512 MEDICAL CARE SERVICES

256 SE56 PROFESSIONAL MEDICAL SERVICES

257 SE5601 PHYSICIANS' SERVICES

258 SE5602 DENTAL SERVICES

259 SE5603 EYE CARE

260 SE5604 SERVICES BY OTHER MED. PROFESSIONALS

261 SE57 HOSPITAL AND RELATED SERVICES

262 SE5701 HOSPITAL ROOM

263 SE5702 OTHER INPATIENT MEDICAL SERVICES

264 SE5703 OUTPATIENT SERVICES

265 SE5709 UNPRICED ITEMS

266 SE58 HEALTH INSURANCE

267 SE581 COMM HLTH INS, RETND EARNG

268 SE5811 COMM HLTH INS, RETND-PRESCRIP DRUG

269 SE5812 COMM HLTH INS, RETND-PHYSICIANS' SER

270 SE5813 COMM HLTH INS, RETND-DENTAL SER

271 SE5814 COMM HLTH INS, RETND-EYECARE SER

272 SE5815 COMM HLTH INS, RETND-OTHER SER

273 SE5816 COMM HLTH INS, RETND-HOSP ROOM

274 SE5817 COMM HLTH INS, RETND-OTH IN HOSP SER

275 SE5818 COMM HLTH INS, RETND-OUT HOSP SER

276 SE582 BLUE CR HLTH INS, RETND EARNG

277 SE5821 BLUE CR RETND EARNG-PRESCRIP DRUG

278 SE5822 BLUE CR RETND EARNG-PHYSICIANS' SER

279 SE5823 BLUE CR RETND EARNG-DENTAL SER

280 SE5824 BLUE CR RETND EARNG-EYECARE SER

281 SE5825 BLUE CR RETND EARNG-OTHER SER

282 SE5826 BLUE CR RETND EARNG-HOSP ROOM

283 SE5827 BLUE CR RETND EARNG-OTHER IN HOSP SER

284 SE5828 BLUE CR RETND EARNG-OUT HOSP SER

285 SE583 HLTH MAINTENANCE PLAN, RETND EARNG

286 SE5831 HMO RETND EARNG-PRESCRIP DRUG

287 SE5832 HMO RETND EARNG-PHYSICIANS' SER

288 SE5833 HMO RETND EARNG-DENTAL SER

289 SE5834 HMO RETND EARNG-EYECARE SER

290 SE5835 HMO RETND EARNG-OTHER SER

291 SE5836 HMO RETND EARNG-HOSP ROOM

292 SE5837 HMO RETND EARNG-OTHER IN HOSP SER

293 SE5838 HMO RETND EARNG-OUT HOSP SER

294 SE584 MEDICARE & COMM MEDI SUPP, RETND

295 SE5841 OTH HLTH INS, RETND-PRESCRIP DRUG

296 SE5842 OTH HLTH INS, RETND-PHYSICIANS' SER

297 SE5843 OTH HLTH INS, RETND-DENTAL SER

298 SE5844 OTH HLTH INS, RETND-EYECARE SER

299 SE5845 OTH HLTH INS, RETND-OTHER SER

300 SE5846 OTH HLTH INS, RETND-HOSP ROOM

301 SE5847 OTH HLTH INS, RETND-OTHER IN HOSP SER

302 SE5848 OTH HLTH INS, RETND-OUT HOSP SER

303 SA6 ENTERTAINMENT

304 SA61 ENTERTAINMENT COMMODITIES

Page 37
Table A.3 CPI Aggregation Tree

305 SE59 READING MATERIALS

306 SE5901 NEWSPAPERS

307 SE5902 MAGAZINES,PERIODICALS, AND BOOKS

308 SE5909 UNPRICED ITEMS

309 SE60 SPORTING GOODS, EQUIPMENT

310 SE6001 SPORT VEHICLES INCLUDING BICYCLES

311 SE6002 OTHER SPORTING GOODS

312 SE61 TOYS, HOBBIES, OTHER ENTERTAINMENT

313 SE6101 TOYS,HOBBIES, & MUSIC EQUIPMENT

314 SE6102 PHOTO SUPPLIES, EQUIPMENT

315 SE6103 PET EXPENSE

316 SE6109 UNPRICED ITEMS

317 SE62 ENTERTAINMENT SERVICES

318 SE6201 CLUB MEMBERSHIPS

319 SE6202 FEES FOR PARTICIPANT SPORTS EXCL CLUB

320 SE6203 ADMISSIONS

321 SE6204 FEES FOR LSSNS OR INSTRUCTION

322 SE6205 PHTGR FEES/FLM PRC/PET & VET SER/OTH

323 SE6209 UNPRICED ITEMS

324 SA7 OTHER GOODS AND SERVICES

325 SE63 TOBACCO AND SMOKING PRODUCTS

326 SE6301 TOBACCO AND SMOKING PRODUCTS

327 SE6309 UNPRICED ITEMS

328 SA712 PERSONAL CARE

329 SE64 TOILET GDS,PERS CARE APPL

330 SE6401 OTH TLT GDS, SM PCARE APPL INCL H & D

331 SE6403 COS,BATH & NAIL PREP/MANICURE & EYE

332 SE65 PERSONAL CARE SERVICES

333 SE6501 BEAUTY PARLOR SVC-FEMALES

334 SE6502 HAIRCTS,OTH BRBR SVC-MALE

335 SE6509 UNPRICED ITEMS

336 SA713 PERSONAL AND EDUCATIONAL EXPENSES

337 SE66 SCHOOL BOOKS AND SUPPLIES

338 SE6601 SCHOOL BOOKS,SUPP-COLLEGE

339 SE6602 ELEM/HIGH SCHL BOOKS,SUPP

340 SE6609 UNPRICED ITEMS

341 SA7132 PERSONAL AND EDUCATIONAL SERVICES

342 SE67 TUITION,OTHER SCHOOL FEES

343 SE6701 COLLEGE TUITION

344 SE6702 ELEM,HIGH SCHOOL TUITION

345 SE6703 DAY CARE & NURSERY SCHOOL

346 SE6704 TUITION FOR TECH, BUSINESS & OTH SCH

347 SE6709 UNPRICED ITEMS

348 SE68 PERSONAL EXPENSES

349 SE6801 LEGAL SERVICE FEES

350 SE6802 PERSONAL FINANCIAL SERVICES

351 SE6803 FUNERAL EXPENSES

352 SE6809 UNPRICED ITEMS

Note: Bold Italics indicates that index is not publicly available.

Page 38
Table A.4 Marginal Effects

Items Included in the PCE Which are Not in the Scope of the CPI.

Total Percent Inflation in PCE from I 1992 to II 1997: 15.631

PCE 

LN 

Marginal effect on PCE Inflation of droping the 

given line:

43 Used auto margin -0.103

44 Employee reimbursement 0.002

123 Food supplied civilians 0.006

124 Food supplied military 0.000

125 Food on farms 0.002

140 Military clothing 0.001

148 Farm fuel 0.000

152 Govt expenditures abroad 0.007

153 Nongovernment expenditures 0.000

154 Less: remittances in kind 0.001

191 Rental value farm housing -0.019

197 Tenant group room & board 0.000

198 Tenant group employee lodging 0.000

247 Income loss insurance -0.013

248 Workers' compensation -0.512

261 Brokerage & invest counsel 0.178

264 Commercial banks -0.599

265 Other financial institutions 0.022

266 Expense of handlng life ins -0.136

270 Labor union expenses 0.005

271 Profession. assoc. expenses 0.001

287 Casino gambling -0.002

289 Pari-mutuel net receipts -0.002

298 Lotteries -0.001

310 Foundations & nonprofit research 0.001

312 Political organizations 0.003

313 Museums & libraries 0.003

314 Foundations to religion & welfare 0.000

315 Social welfare 0.042

316 Religion 0.013

319 Air fares foreign travel 0.000

320 U.S. travel outside the U.S. 0.033

321 U.S. student expenditures 0.001

323 Foreign travel in U.S. -0.021

324 Medical exp of foreigners -0.003

325 Exp of foreign students in U.S. -0.024

Page 39
Table A.5 Weight Effects

CPI ID Title 100*dw PdW

SE01 CEREALS AND CEREAL PRODUCTS -0.0523 0.002

SE02 BAKERY PRODUCTS 0.0155 0.001

SE03 BEEF AND VEAL 0.2716 -0.030

SE04 PORK 0.0425 0.004

SE05 OTHER MEATS 0.1625 -0.003

SE06 POULTRY -0.0291 -0.001

SE07 FISH AND SEAFOOD 0.1279 0.003

SE08 EGGS 0.1041 0.015

SE09 FRESH MILK AND CREAM 0.2415 -0.001

SE10 PROCESSED DAIRY PRODUCTS 0.1142 -0.002

SE11 FRESH FRUITS 0.3375 0.046

SE12 FRESH VEGETABLES 0.1512 0.003

SE13 PROCESSED FRUITS -0.0158 0.001

SE14 PROCESSED VEGETABLES -0.0468 0.000

SE15 SUGAR AND SWEETS -0.3394 0.011

SE16 FATS AND OILS 0.0072 0.000

SE17 NONALCOHOLIC BEVERAGES -0.3351 -0.008

SE18 OTHER PREPARED FOODS -0.4643 -0.002

SE19 FOOD AWAY FROM HOME 0.6349 -0.019

SE2001 BEER AND ALE AT HOME -0.4176 0.046

SE2002 DISTILLED SPIRITS AT HOME -0.0063 0.000

SE2003 WINE AT HOME -0.0336 0.002

SE2005 ALCOHOLIC BEV AWAY FROM HOME 0.0724 0.001

SE2101 RENT OF DWELLING 1.6615 -0.018

SE2102 LODGING WHILE OUT OF TOWN 1.5230 0.110

SE2103 LODGING WHILE AT SCHOOL 0.0466 0.004

SE2201 OWNERS' EQUIVALENT RENT 7.2197 0.172

SE2202 HOUSEHOLD INSURANCE 0.3804 0.007

SE23 MAINTENANCE AND REPAIR SERVICES 0.1253 -0.002

SE24 MAINTENANCE AND REPAIR COMMOD. 0.0787 -0.004

SE2501 FUEL OIL 0.0818 -0.003

SE2502 OTHER HOUSEHOLD FUEL COMMOD. 0.0255 -0.001

SE2601 ELECTRICITY 0.4582 -0.032

SE2602 UTILITY (PIPED) GAS 0.3615 -0.015

SE2701 TELEPHONE- MAIN STATN SERV 0.2717 -0.026

SE2702 WATER/SEWERAGE MAINTENANCE 0.0691 0.005

SE2703 COMMUNITY ANTENNA,CABLE TV 0.0627 0.005

SE2704 GARBAGE/TRASH COLLECTION 0.0686 0.004

SE2705 TELE.INTERSTATE TOLL CALL -0.3362 -0.006

SE2706 TELE.INTRASTATE TOLL CALL -0.0261 0.003

SE28 TEXTILE HOUSEFURNISHINGS -0.3870 0.053

SE29 FURNITURE AND BEDDING 0.1480 -0.002

SE30 MAJOR HOUSEHOLD APPLIANCES -0.3287 0.037

SE3101 TELEVISION -0.2421 0.068

SE3102 OTHER VIDEO EQUIPMENT -0.2316 0.082

SE3103 SOUND EQUIPMENT -0.2477 0.051

SE3201 FL/WDW CV,IN/LDY/CL/OD EQ -0.1483 0.005

SE3202 CLOCKS,LAMPS, AND DECOR ITEMS -0.2218 0.028

SE3203 TBLWR,SRV PCS,NONEL KTNWR -0.3153 0.037

SE3204 LAWN EQ, POWER TOOLS & OTH HRDW 0.0253 -0.002

Page 40
Table A.5 Weight Effects

SE3205 SEWING MACH & PORTABLE HEATING EQUIP 0.1038 -0.022

SE3206 INDOOR PLANTS & FRESH CUT FLOWERS -0.1327 0.015

SE3209 UNPRICED ITEMS 0.0935 -0.010

SE3301 LAUNDRY & CLNING PRODUCTS INCL SOAP -0.3924 0.029

SE3303 HOUSEHOLD PAPER PROD & STNRY SUPPLIES -0.3970 -0.001

SE3305 MISC HOUSEHOLD PRODUCTS 0.2124 -0.008

SE3401 POSTAGE 0.0163 -0.001

SE3402 BABYSITTING 0.2486 0.021

SE3403 DOMESTIC SERVICE -0.0255 0.000

SE3404 GARDENING,OTH HOME SERV. 0.0150 0.000

SE3406 APPLIANCE AND FURNITURE REPAIR -0.0709 -0.002

SE3407 CARE OF INVALIDS/ELDERLY/CONVALES 0.0520 0.001

SE3409 UNPRICED ITEMS 0.1156 0.000

SE35 TENANTS' INSURANCE -0.1963 -0.004

SE36 MEN'S APPAREL -0.2379 0.026

SE37 BOYS' APPAREL -0.0506 0.007

SE38 WOMEN'S APPAREL -0.2770 0.046

SE39 GIRLS' APPAREL -0.0500 0.008

SE40 FOOTWEAR -0.0878 0.011

SE41 INFANTS',TODDLERS' APPAREL -0.1419 0.015

SE42 SEWING MATERIALS,NOTIONS & LUGGAGE -0.1141 0.009

SE43 WATCHES AND JEWELRY -0.4230 0.052

SE4401 OTHER APPAREL SERVICES 0.2233 -0.014

SE4402 OTH LNDRY,DRY CL-APPAREL -0.3342 0.007

SE4501 NEW CARS 1.8599 -0.067

SE4502 NEW TRUCKS -0.5232 -0.008

SE4503 NEW MOTORCYCLES 0.0292 0.005

SE46 USED CARS 0.6518 0.067

SE4701 MOTOR FUEL 0.5155 -0.049

SE4702 MOTOR OIL, COOLANT, AND OTHERS -0.0018 0.000

SE4801 TIRES -0.0722 0.010

SE4802 OTHER PARTS AND EQUIPMENT -0.1188 0.019

SE49 AUTOMOBILE MAINTENANCE AND REPAIR -0.4422 -0.003

SE50 AUTOMOBILE INSURANCE 1.8253 0.148

SE51 AUTOMOBILE FINANCE CHARGES 0.5772 -0.026

SE5201 AUTO REGISTR, LICEN & INSPEC FEES 0.3902 -0.030

SE5205 OTHER AUTOMOBILE RELATED FEES -0.2255 -0.016

SE5209 UNPRICED ITEMS 0.0271 0.000

SE5301 AIRLINE FARE 0.3411 0.054

SE5302 OTHER INTERCITY PUBLIC TRANSPORTATION 0.0979 -0.012

SE5303 INTRACITY PUBLIC TRANSPORTATION 0.1308 0.007

SE5309 UNPRICED ITEMS 0.0109 0.001

SE54 PRESCRIPTION DRUGS -0.3885 -0.008

SE5502 INT & RESP OVER-THE-COUNTER ITEM -0.2331 0.011

SE5503 NONPRSCRPT MED EQUIP, SUPP 0.0108 0.000

SE5601 PHYSICIANS' SERVICES -2.6289 -0.228

SE5602 DENTAL SERVICES -0.0152 -0.002

SE5603 EYE CARE 0.0368 -0.001

SE5604 SERVICES BY OTHER MED. PROFESSIONALS -1.8945 -0.016

SE57 HOSPITAL AND RELATED SERVICES -6.3891 -1.002

SE58 HEALTH INSURANCE -0.6797 -0.080

Page 41
Table A.5 Weight Effects

SE5901 NEWSPAPERS 0.0695 0.007

SE5902 MAGAZINES,PERIODICALS, AND BOOKS -0.4019 0.004

SE6001 SPORT VEHICLES INCLUDING BICYCLES -0.2176 0.022

SE6002 OTHER SPORTING GOODS -0.3961 0.056

SE6101 TOYS,HOBBIES, & MUSIC EQUIPMENT -0.2050 0.019

SE6102 PHOTO SUPPLIES, EQUIPMENT -0.0670 0.009

SE6103 PET EXPENSE -0.2800 0.008

SE6109 UNPRICED ITEMS 0.0104 -0.001

SE6201 CLUB MEMBERSHIPS 0.1066 -0.009

SE6202 FEES FOR PARTICIPANT SPORTS EXCL CLUB 0.3151 0.031

SE6203 ADMISSIONS 0.2521 0.016

SE6204 FEES FOR LSSNS OR INSTRUCTION 0.2323 0.023

SE6205 PHTGR FEES/FLM PRC/PET & VET SER/OTH -0.5901 -0.014

SE6209 UNPRICED ITEMS 0.0219 0.001

SE63 TOBACCO AND SMOKING PRODUCTS 0.4388 -0.017

SE6401 OTH TLT GDS, SM PCARE APPL INCL H & D -0.1688 0.021

SE6403 COS,BATH & NAIL PREP/MANICURE & EYE -0.2660 0.008

SE6501 BEAUTY PARLOR SVC-FEMALES -0.0877 -0.001

SE6502 HAIRCTS,OTH BRBR SVC-MALE 0.0649 0.002

SE6509 UNPRICED ITEMS 0.0005 0.000

SE66 SCHOOL BOOKS AND SUPPLIES 0.1950 0.020

SE6701 COLLEGE TUITION 0.0594 0.014

SE6702 ELEM,HIGH SCHOOL TUITION 0.0408 0.008

SE6703 DAY CARE & NURSERY SCHOOL 0.2437 0.023

SE6704 TUITION FOR TECH, BUSINESS & OTH SCH 0.1380 0.016

SE6709 UNPRICED ITEMS 0.0996 0.019

SE6801 LEGAL SERVICE FEES -0.7948 -0.039

SE6802 PERSONAL FINANCIAL SERVICES -0.5269 -0.112

SE6803 FUNERAL EXPENSES 0.0888 0.013

SE6809 UNPRICED ITEMS 0.0986 0.012

SE69 INFORMATION PROCESSING EQUIPMENT -0.1808 0.097

Page 42
Table A.6 Price Effects

BEA Line 

Number BEA Line Title

Difference 

in Prices

Price 

Effect

39 New domestic autos 0.16 0.0022

40 New foreign autos 0.16 0.0013

42 Net transactions in used autos -0.10 -0.0006

46 Pce trucks 0.00 -0.0001

47 Recreational vehicles 0.00 0.0000

49 Tires & tubes -0.01 0.0000

50 Accessories & parts 0.00 0.0000

52 Furniture -0.01 -0.0001

54 Major household appliances 0.00 0.0000

55 Small electric appliances -0.01 0.0000

56 China & glaswr, tablwr & ut 0.00 0.0000

59 Televisions 0.00 0.0000

60 Other video eqpt 0.01 0.0000

62 Audio eqpt 0.00 0.0000

63 Records, tapes, & disks 0.00 0.0000

64 Musical instruments 0.00 0.0000

65 Pce computers 34.44 0.1074

67 Floor coverings 0.00 0.0000

69 Clocks, lamps, & artwork 0.01 0.0000

70 Textile products 5.32 0.0082

71 Writing eqpt 0.02 0.0000

73 Hardware, tools 0.00 0.0000

74 Lawn & garden tools 0.00 0.0000

76 Jewelry & watches -0.01 -0.0001

77 Opthalmic & orthopedic eqpt 0.00 0.0000

78 Books & maps 0.00 0.0000

81 Guns 0.00 0.0000

82 Sporting eqpt 0.00 0.0000

83 Bicycles 0.00 0.0000

84 Motorcycles 0.03 0.0000

85 Cameras 0.01 0.0000

87 Boats 0.00 0.0000

88 Pleasure aircraft -3.92 -0.0006

93 Beef & veal 1.59 0.0119

94 Pork 1.89 0.0098

95 Other meat 1.73 0.0041

96 Fresh milk & cream 0.37 0.0013

97 Processed dairy products 0.36 0.0018

98 Poultry 1.83 0.0083

99 Eggs 2.06 0.0013

100 Fresh fruit 2.05 0.0061

101 Fresh vegetables 1.94 0.0083

102 Processed fruit 0.50 0.0019

103 Processed vegetables 0.55 0.0017

104 Cereals 0.47 0.0024

105 Bakery products 0.49 0.0047

106 Fats & oils 0.34 0.0008

107 Sugar & sweets 0.36 0.0024

108 Nonalcoholic beverages 0.36 0.0038

Page 43
Table A.6 Price Effects

109 Other prepared food 0.37 0.0055

110 Fish & seafood 1.79 0.0042

111 Pet food 0.00 0.0000

113 Distilled spirits 0.01 0.0000

114 Wine & brandy 0.00 0.0000

115 Beer & ale 0.01 0.0001

118 Elem & second school lunch 0.00 0.0000

119 Higher ed school lunch 0.00 0.0000

120 Other purchased meals 0.00 -0.0001

121 Alcohol in purchased meals 0.00 0.0000

128 Footwear 0.03 0.0003

131 Women's & girls' clothing -0.02 -0.0005

132 Infants' clothing 0.01 0.0000

133 Women's sewing goods -0.75 -0.0007

134 Womens luggage -0.72 -0.0006

137 Men's & boys' clothing 0.00 0.0000

138 Men's sewing goods -0.75 -0.0001

139 Mens luggage -0.72 -0.0002

142 Gasoline & other motor fuel 0.01 0.0001

143 Lubricants 0.00 0.0000

146 Fuel oil 0.05 0.0001

147 Lp gas & other fuel 2.85 0.0027

150 Tobacco 0.00 0.0001

155 Semi-durable house furnishi -8.61 -0.0526

157 Prescription drugs -0.01 -0.0001

158 Nonprescription drugs 0.00 0.0000

159 Medical supplies 0.00 0.0000

160 Gynecological products 0.01 0.0000

162 Soap 0.01 0.0000

163 Cosmetics 0.00 0.0000

164 Other personal hygiene products 0.01 0.0000

166 Stationery & school supplies -6.46 -0.0115

167 Greeting cards -6.46 -0.0115

169 Ammunition 0.00 0.0000

170 Film 0.01 0.0000

171 Toys, dolls, & games 0.01 0.0000

172 Flowers seeds & potted plants 0.02 0.0001

174 Lighting supplies 1.98 0.0028

175 Cleaning preparations 0.01 0.0001

176 Paper products 0.00 0.0000

178 Newspapers 0.00 0.0000

179 Magazines 0.00 0.0000

185 Owner occupied mobile home 0.96 0.0047

186 Owner occupied station homes 0.97 0.1126

188 Tenant occupied mobile homes -0.56 -0.0007

189 Tenant occupied station homes -0.51 -0.0201

190 Tenant landlord durables -10.65 -0.0118

193 Hotels & motels 0.04 0.0002

194 Clubs & fraternity housing -0.79 -0.0001

195 Higher education housing 0.01 0.0000

196 Elem & second educat housing 1.24 0.0000

Page 44
Table A.6 Price Effects

201 Electricity 0.00 -0.0001

202 Natural gas 0.08 0.0006

204 Water & sewerage maintenance 0.00 0.0000

205 Refuse collection 0.00 0.0000

207 Local telephone -0.01 -0.0001

208 Intrastate toll calls -0.01 0.0000

209 Interstate toll calls -0.04 -0.0003

211 Domestic service, cash -3.87 -0.0100

212 Domestic service, in kind 0.13 0.0000

214 Moving & storage -2.00 -0.0040

216 HH insurance premiums 0.00 0.0000

217 Less: HH insur benefits paid 0.01 0.0000

218 Rug & furniture cleaning -0.05 0.0000

219 Electrical repair -0.06 0.0000

220 Reupholstery & furniture repair -0.05 0.0000

221 Postage 0.00 0.0000

222 Household operation nec -1.99 -0.0034

225 Auto repair 0.01 0.0001

226 Auto rental, leasing & other 0.18 0.0009

227 Bridge & road tolls 0.11 0.0001

228 Net auto insurance premiums -1.14 -0.0076

229 Taxicab -2.96 -0.0020

230 Mass transit systems -0.23 -0.0003

231 Intercity railways -12.49 -0.0026

232 Intercity buses 6.17 0.0017

233 Airline 23.09 0.1412

234 Other transportation services -0.05 0.0000

236 Physicians 5.41 0.2380

237 Dentists 0.01 0.0001

238 Other professional medical 0.03 0.0006

241 For-profit hospitals 12.00 0.0951

242 Nonprofit hospitals 15.21 0.7343

243 Government hospitals 12.06 0.1749

244 Nursing homes 8.54 0.1148

246 Medical & hospital insurance 0.32 0.0031

250 Shoe repair 0.03 0.0000

252 Drycleaning 0.04 0.0000

253 Laundry & garment repair -0.01 0.0000

255 Watch, clock, & jewelry repair 0.03 0.0000

256 Miscellaneous personal services 0.07 0.0002

258 Beauty shops, incl combination 0.01 0.0001

259 Barber shops 0.00 0.0000

262 Bank service charges 0.02 0.0001

267 Legal services 0.25 0.0031

268 Funeral & burial expenses 0.00 0.0000

272 Employ agency fees -0.11 0.0000

273 Money orders -0.02 0.0000

274 Classified ads -0.04 0.0000

275 Tax return prep services 0.04 0.0000

276 Other personal business 0.42 0.0001

278 Repair of audio & video eqpt -0.02 0.0000

Page 45
Table A.6 Price Effects

279 Motion picture admissions 0.07 0.0001

280 Live entertain excl. sports 0.00 0.0000

281 Spectator sports 0.03 0.0000

282 Clubs & fraternal organizations -5.32 -0.0144

284 Sightseeing -0.23 -0.0001

285 Private flying 0.52 0.0000

286 Bowling & billiards 0.13 0.0001

288 Other comml participant amuse 0.02 0.0000

291 Pets & pets services excl. vets 0.01 0.0000

292 Veterinarians -0.01 0.0000

293 Cable tv 0.02 0.0001

294 Film developing -0.03 0.0000

295 Photo studios 0.03 0.0000

296 Sporting & recreational camps -0.08 0.0000

297 High school recreation 0.09 0.0000

299 Video cassette rental 16.50 0.0262

300 Commercial amusements nec 0.04 0.0002

303 Private higher education 20.37 0.1521

304 Public higher education -0.02 -0.0001

306 Elementary & secondary schools 17.19 0.0681

307 Nursery schools 11.27 0.0125

309 Commercial & vocational schools 10.06 0.0363

Page 46
Table A.7 Time Series

Date Price Effect

Weight 

Effect

Sum of (2) 

and (3)

Index 

Difference

Unexplaine

d Residual

(1) (2) (3) (4) (5) (6)

A 1992 0.0000 0.0000 0.0000 0.0000 0.0000

I 93 0.2547 -0.1178 0.1369 0.1500 0.0131

II 93 0.4587 -0.2127 0.2460 0.2800 0.0340

III 93 0.5850 -0.2842 0.3008 0.3500 0.0492

IV 93 0.7462 -0.3333 0.4129 0.4500 0.0371

I 94 0.8693 -0.3546 0.5147 0.4900 -0.0247

II 94 0.9939 -0.4734 0.5205 0.5300 0.0095

III 94 1.1351 -0.4754 0.6597 0.6800 0.0203

IV 94 1.2460 -0.4661 0.7800 0.8300 0.0500

I 95 1.2638 -0.3898 0.8740 0.8500 -0.0240

II 95 1.3822 -0.2919 1.0903 1.1000 0.0097

III 95 1.5061 -0.3557 1.1504 1.1400 -0.0104

IV 95 1.6296 -0.3794 1.2502 1.2800 0.0298

I 96 1.7930 -0.3817 1.4114 1.3800 -0.0314

II 96 1.8319 -0.2872 1.5447 1.5100 -0.0347

III 96 1.9028 -0.1783 1.7245 1.7400 0.0155

IV 96 1.8645 -0.0768 1.7877 1.8200 0.0323

I 97 1.8988 -0.1008 1.7980 1.7900 -0.0080

II 97 1.9709 -0.1591 1.8117 1.8000 -0.0117

Page 47