Estimating Variances for a Scanner‐Based Consumer Price Index

Sylvia G. Leaver and William E. Larson

Abstract

In this paper we present estimates of the sampling variance of price change for an experimental scanner-based Consumer Price Index for cereal for the New York Consolidated Metropolitan Area. Variances are presented for 1-, 6- and 12-month price change lags, using a stratified jackknife methodology. Estimates are contrasted with variance estimates for the published price index for cereal for the same area. Sources of price change variability are identified and discussed.