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Inaccuracies Of The Consumer Price Index(CPI) Beginning of Paper Inaccuracies of the Consumer Price Index(CPI) The Consumer Price Index is a measure of the prices of a fixed market basket of some 300 consumer goods and services purchased by a "typical" urban consumer. The 1982-1984 period serves as the base period so analysts can compare other yea .... Middle of Paper .... this does not occur and therefore it overcompensates the standard of living. Secondly, because the base period was over a decade ago, the quality of the products has increased significantly, and therefore the prices should be higher. The CPI, however, assumes that the increases in prices is a result of inflation rather than quality improvements which is false. Here also, the CPI overstates the rate of inflation. Many consumers do not mind the overcompensation of the CPI because in most cases it means more money in their pockets, but there a .... 452 words | 2 pages Subscription Length Price Join 30 days membership (recurring) $19.95 90 days membership (recurring) $39.95 180 days membership (non-recurring) $69.95