Improvements to the CPI index series for residential telecommunications services

Residential telecommunications services consist of a combination of telephone, internet, and television services. In February 2019, the U.S. Bureau of Labor Statistics (BLS) began to adjust the price quotes of residential telecommunications services to improve the accuracy of Consumer Price Index series. However, BLS analysts experienced a few challenges. This article identifies and addresses those challenges. With the release of January 2019 Consumer Price Index (CPI) data, the U.S. Bureau of Labor Statistics (BLS) began to adjust the collected price quotes of residential telecommunications services to ensure they are of constant quality. In estimating the CPI, BLS measures only differences in price between comparable items, not differences in price that arise from differences in quality.