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Asimakopulos, Holmes and Rothwell on Monthly Baskets in the CPI
Following the updating of the Consumer Price Index to a 1957 basket, there was an exchange of views between Professor Athanasios (Tom) Asimakopulos and Allan Holmes, the director of Prices Division in the Canadian Journal of Economics and Political Science. Unfortunately, their published remarks do not give a fair reflection of the views of either man regarding the issue of seasonal weighting for seasonal commodities in the CPI in general, or of the Rothwell formula in particular.
Their exchange is of continuing interest since the Rothwell formula was used in the Retail Price Index for seasonal food groups from 1975 to January 2008 and could be used for holiday trips and horse track admissions in place of the existing formula.
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