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Its based on something referred to as a fixed Market Basket, sort of like look at all the stuff people are buying at a point in time and how much to those prices go up. Would avoid two things you bought come you bought equal amounts, one of than doubled in price and the other one stayed the same, if one doubled and the other state the same, you would say, you at 50 increase in prices. So thats kind of what the fixed Market Basket approach would say. It tells you much the prices go up on the stuff that you have bought and that youve considered buying. Nothing is added in the cpi by the way for new things that come on the market. Some of us are old enough to remember vcrs coming around. Everyone here probably remembers when dvd players came around. Lots of other things like that. When they come into the cpi, they dont boost the level of cpi. Its just a rate of change and the prices of things that are already out there. An interesting thing about the nature of new things that come in, new

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