A market basket or commodity bundle is a fixed list of items, in given proportions, used specifically to track the progress of inflation in an economy or specific market.
Video Market basket
Consumer basket
The most common type of market basket is the basket of consumer goods used to define the Consumer Price Index (CPI). It is a sample of goods and services, offered at the consumer market.
In the United States, the sample is determined by Consumer Expenditure Surveys conducted by the Bureau of Labor Statistics. The price collection is conducted by data collectors on a monthly basis, and is processed further by commodity specialists.
Examples of categories included in the basket are:
- Food and Beverages (breakfast cereal, milk, coffee, chicken, wine, full service meals, snacks)
- Housing (rent of primary residence, owners' equivalent rent, fuel oil, bedroom furniture)
- Apparel (men's shirts and sweaters, women's dresses, jewelry)
- Transportation (new vehicles, airline fares, gasoline, motor vehicle insurance)
- Medical Care (prescription drugs and medical supplies, physicians' services, eyeglasses and eye care, hospital services)
- Recreation (televisions, toys, pets and pet products, sports equipment, admissions)
- Education and Communication (college tuition, postage, telephone services, computer software and accessories)
- Other goods and Services (tobacco and smoking products, haircuts and other personal services, funeral expenses)
Maps Market basket
Other baskets
Other types of baskets are used to define the Producer Price Index (PPI), previously known as the Wholesale Price Index (WPI), as well as various commodity price indices.
See also
- Market basket analysis - a distinct concept in data mining involving the analysis of items frequently purchased together.
References
- DM Review article on Market basket analysis
- Specific
Source of the article : Wikipedia
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