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Abstract

This article explores the far-reaching implications of the Consumer Price Index (CPI) on the consumer well-being. There has been much debate recently regarding the CPI. It has been claimed that it exaggerates the realities of the economic conditions in favor of the poor. However, the author, by construct ing two CPIs, one for the rich and one for the poor, maintains that, on the contrary, the current CPI does not fairly reflectthe economic conditions that the poor are facing. If anything, it understates the cost of living for the poor. Thus, having only one representative national CPI is not quite fair. The article proposes at least one price index for the rich and one for the poor.

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The Consumer Price Index and Consumer Well-Being: Developing a Fair Measure

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