Periodically, the Bureau of Labor Statistics makes adjustments to the components that make up the Consumer Price Index and how it is calculated. 2010 will bring with it new changes to the CPI. In February, the CPI will announce the new weightings for the Consumer Price Index components that will take effect January 1, 2010.
There will also be changes to the structure of the categories and items that the BLS tracks. The first change will be to the Shelter spending category. Two of the four sub categories included under Shelter were ‘Lodging Away from Home’ and ’Owners’ Eqivalent Rent of Primary Residence’. Prior to 2010, the equivalent rent of secondary residences was unpublished, but included within the ‘Lodging Away from Home’ category. Starting in 2010, the equivalent rent of secondary residences will remain unpublished, but the data will be included in the newly renamed ‘Owners’ Equivalent Rent of Residences.’
Current Structure of Shelter:
Rent of primary residence
Lodging away from home
Housing at school, excluding board
Other lodging away from home including hotels and motels
Owners’ equivalent rent of primary residence
Owners’ equivalent rent of primary residence
Tenants’ and household insurance
New Structure of Shelter:
Rent of primary residence
Lodging away from home
Housing at school, excluding board
Other lodging away from home, including hotels and motels
Owners’ equivalent rent of residences
Owners’ equivalent rent of primary residence
Tenants’ and household insurance
Medical Care Commodities is another spending category that will see changes. Previously, this category was broken down into two sub categories, ‘Prescription Drugs’ and ‘Nonprescription Drugs and Medical Supplies’. Under the new structure starting in January 2010, the Medical Care Commodities category will consist of the ‘Medicinal Drugs’ and ‘Medical Equipment and Supplies’ sub categories. Both Prescription and Nonprescription drugs will be included within the Medicinal Drugs sub category. Internal and Respiratory Over-The-Counter Drugs will no longer be tracked as its own item. Included in the new Medical Equipment and Supplies category will be the unpublished spending item, rent or repair of medical equipment. Previously, this item was also unpublished, but tracked within the Perscription Drugs category.
Current Structure of Medical Care Commodities:
Prescription drugs
Nonprescription drugs and medical supplies
Internal and respiratory over-the-counter drugs
Nonprescription medical equipment and supplies
New Structure of Medical Care Commodities:
Medicinal drugs
Prescription drugs
Nonprescription drugs
Medical equipment and supplies
To better reflect the realities of the telecom industry, the BLS will also be updating the Telephone Services category in January 2010. Land-line telephone services for local and long distance services will be combined instead of being tracked seperately. Land-line interstate toll calls and land-line intrastate toll calls will no longer be tracked.
Current structure of Telephone Services:
Land-line telephone services, local charges
Land-line telephone services, long distance charges
Land-line interstate toll calls
Land-line intrastate toll calls
Wireless telephone services
New structure of Telephone Services:
Telephone services
Wireless telephone services
Land-line telephone services
A new item that will be tracked within the transportation category is Intracity Mass Transit. It will be an item within the Intracity Transportation category. Also, included in this category, but not individually reported by the BLS, are taxi fares.
Current structure of Public Transportation:
Airline fare
Other intercity transportation
Ship fare
Intracity transportation
New structure of Public Transportation:
Airline fare
Other intercity transportation
Ship fare
Intracity transportation
Intracity mass transit
And finally, the spending item, State and Local Registration and License, will be renamed to ‘State Motor Vehicle Registration and License Fees’, a more descriptive and fitting name if you ask us.
