MTCG Inc. was one of the leading consulting firms in the revision and updating of the Consumer Price Index (CPI) used by the Puerto Rico Department of Labor and Human Resources (DTRH). The CPI is the most widely used economic indicator to measure inflation. It is used as a means to determine the value of the dollar compared to a base year and is also used as a deflator of other economic series.
MTCG staff of statisticians, social scientists and computer scientists worked closely with staff from the DTRH’s Bureau of Labor Statistics (NET) in the development of algorithms and adjustment mechanisms for seasonal items, as well as substitution mechanisms for items. New weighing methodologies were introduced in the revision of the CPI to account for sensitivities in the addition of new products to each of the eight main baskets of goods and services and its 70 sub-groups.
Among the most important changes introduced in the revised CPI was the addition of 120 new categories for services and products.
As part of the revision, more than 1,200 establishments were visited across Puerto Rico by the NET’s staff of field surveyors to select and price the items that are part of the TPOPS survey, and more than 1,200 renter-occupied households were visited to collect information on the cost of rent. MTCG’s role included the preparation and training of the field surveyors from the NET.
Our staff was involved in the programming and development of the administrator system of the CPI’s database servers and in the development of software applications for the mobile equipment used in the collection of field data.
Our staff worked with the NET staff in the commissioning of the new index prior to its launch, which included:
1) Testing and troubleshooting of equipment and connections
2) Debugging of programs and applications
3) Adjustments in pricing of items during the initiation phase
4) Adjustment in specifications of items (weights, volumes, amount)
5) Substitution of items/services and substitution of retail establishments
More information on the Consumre Price Index can be found at http://www.mercadolaboral.pr.gov.