Crossley, Thomas; Pendakur, Krishna - Institute for Fiscal Studies (IFS) - 2006
-weighted average which downweights the experience of poor households relative to rich households. Finally, it uses only first … cost-of-living index, which is defined as the single scaling to everyone's expenditure which holds social welfare constant … approximations of individual cost-of-living indices. The Consumer Price Index (CPI) is the expenditure-weighted average of first …