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GGD-83-32 1 (1983-04-01)

handle is hein.gao/gaobabdyn0001 and id is 1 raw text is:                                                               O9 i-


BY THE COMPTROLLER GENERAL



Report To The Congress

OF THE UNITED STATES




Funds Needed To Develop CPI

Quality Control System




The Consumer Price Index (CPI) is one of the
most important statistics produced by the
Government. A 1-percent increase in the
CPI, for example, can increase Federal
outlays by about $2 billion annually for
entitlement programs, such as Social
Security, that have benefits adjusted by
increases in the CPI.

The Bureau of Labor Statistics' quality
controls provide a check on but are not
sufficient to ensure the accuracy of the price
data used to construct the CPI. The Bureau
has requested funds to design a better
system of controls. GAO recommends that
the Congress approve that request.
GAO found no evidencethatthe reliability of
the national CPI has been compromised by
bad data. GAO and the Bureau are less
confident, however, about the local area
CPIs that are published as by-products of
the national CPI. GAO recommends that the
Bureau do a better job of alerting. users to
the concerns about the reliability of the local
indexes.




                          vDS7,4220971


M              U
                                                             GAO/GGD-83-32
                                                               APRIL 1, 1983


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