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7. What goods and services does the CPI cover? <br />The CPI represents all goods and services purchased for consumption by the reference <br />population (U or W) BLS has classified all expenditure Items into more than 200 categories, <br />arranged into eight major groups. Major groups and examples of categories in each are as <br />follows: <br />^ FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, service meals <br />and snacks) <br />^ HOUSING {rent of primary residence, owners' equivalent rent, fuel oii, bedroom <br />furniture) <br />^ APPAREL (men's shirts and sweaters, women's dresses, jewelry) <br />• TRANSPORTATION {new vehicles, airline fares, gasoline, motor vehicle insurance) <br />^ MEDICAL CARE {prescription drugs and medical supplies, physicians' services, <br />eyeglasses and eye care, hospital services) <br />^ RECREATION (televisions, pets and pet products, sports equipment, admissions); <br />• EDUCATION AND COMMUNICATION (college tuition, postage, telephone services, <br />computer software and accessories); <br />^ OTHER GOODS AND SERVICES (tobacco and smoking products, haircuts and other <br />personal services, funeral expenses). <br />Also included within these major groups are various government-charged user fees, such as <br />water and sewerage charges, auto registration fees, and vehide tolls. In addition, the CPI <br />includes taxes (such as sales and excise taxes) that are directly associated with the prices <br />of specific goods and services. However, the CPI excludes taxes (such as income and Social <br />Security taxes) not directly associated with the purchase of consumer goods and services. <br />The CPI does not include investment Items, such as stocks, bonds, real estate, and life <br />insurance. (These Items relate to savings and not to day-to-day consumption expenses.) <br />For each of the more than 200 item categories, using scientific statistical procedures, the <br />Bureau has chosen samples of several hundred specific items within selected business <br />establishments frequented by consumers to represent the thousands of varieties available in <br />the marketplace. For example, in a given supermarket, the Bureau may choose a plastic <br />bag of golden delicious apples, U.S. extra fancy grade, weighing 4.4 pounds to represent <br />the Apples category. <br />http://www.bls.gov/cpi/cpifaq.htm#Question 7 <br />