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The Consumer Price Index (CPI) for food is a component of the all-items CPI. The CPI measures
the average change over time in the prices paid by urban consumers
for a representative market basket of consumer goods and services.
While the all-items CPI measures the price changes for all consumer
goods and services, including food, the CPI for food measures the
changes in the retail prices of food items only.
At
ERS, work on the CPI for food consists of several activities. ERS reports
the current index level for food, examines changes in the CPI for food,
and constructs forecasts
of the CPI for food for the next 12-18 months. Forecasting the CPI
for food has become increasingly important due to the changing structure
of food and agricultural economies and the important signals the forecasts
provide to farmers, processors, wholesalers, consumers, and policymakers.
Tracking the trends in American's food expenditures
is another area of work at ERS. Food expenditures are calculated by estimating current sales or receipts by each type of store that sells food. Here, estimates of food purchases for at-home use, meal and snack purchases for away-from-home consumption, and alcoholic beverages purchased by families, individuals, and institutions provides the most direct calculation of food expenditures. This information allows the analysis of shifts in where food is consumed and changes in American food consumption patterns. The direct calculation of food sales and receipts differs from expenditure surveys such as the Bureau of Labor Statistics' Consumer Expenditure Survey.
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