Outlet types and the Canadian Consumer Price Index

Alan G. White

Canadian Journal of Economics, 2000, vol. 33, issue 2, 488-505

Abstract: Recent phenomenal growth in popularity of large warehouse/discount stores has important implications for price measurement. Consumer substitution to such outlets could produce a bias in consumer price indexes (CPIs), which may be exacerbated by unrepresentative sampling and discount outlets" apparent slower rates of price increases. It is shown that in 1990-96 unit value indexes rose at a lower rate than the corresponding Canadian CPI subaggregate indexes for other household equipment, non-prescribed medicines, and audio equipment, and biases arising from unrepresentative sampling and differential rates of price increases across outlets have resulted in an additional overstatement for these subaggregates.

Date: 2000
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