Are There Any Drastic Changes From the 2014 Cost of Living Index?

Are There Any Drastic Changes From the 2014 Cost of Living Index?

Are There Any Drastic Changes From the 2014 Cost of Living Index?

There have not been drastic changes in the cost of living index, also known as the consumer price index, since 2014. At the end of 2014, the 12-month change in CPI excluding food and energy was 1.6 percent, as compared to 1.8 percent as of June 30, 2015.

While the cost of living index has not moved drastically since 2015 began, the way in which the Bureau for Labor Statistics gathers data used to calculate the index value has changed. Effective with the release of the January 2015 CPI on February 26, 2015, the Bureau of Labor Statistics utilizes a new estimation system for the Consumer Price Index.

The new estimation system, the first major improvement to the existing system in over 25 years, is a redesigned, state-of-the-art system with improved flexibility and review capabilities. In addition, this change eliminates paper in all steps of producing the CPI. The use of the Constant Elasticity of Substitution formula for initial and interim estimates of the C-CPI-U, and the new quarterly revision schedule for C-CPI-U indexes, are possible because of this new system.