What is CHAIN WEIGHTED CPI?

As an alternative to the Consumer Price Index, this measurement is used to remove any biases related to new products, any changes in quality, and discounted pricing. The chain weighted CPI uses both the average changes in the quantity of products purchases, as well as the standard pricing effects. This blend allows for evaluation of situations where customers shift the focus of their purchases from one area of spending to a different area.

More On This Topic



Link to This Definition
Did you find this definition of CHAIN WEIGHTED CPI helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary