CPI in Germany

The CPI measures the change in prices of all goods and services that are purchased for consumption by families. Therefore it provides a detailed information on developments in the general level of prices in the country.

A survey was conducted at about 190 establishments, to see the evolution of the prices of 750 products and services. These are elected to represent the best possible household consumption, which is reviewed every five years. Each good or service has a specific weight in the calculation, according to its importance within the budgets of families. The base year is 2000 (equal to 100 index).

The development of prices directly affects the purchasing power or purchasing of final consumers. From this point of view, the CPI is an important source of information about how to change the prices of those items that families normally buy. It is therefore considered an important indicator of overall inflation.

It is based on a basket of goods and services with a specific weight in household budgets, which are only reviewed every five years. In turn does not consider the quality of goods and services considered.