A Systematic Review of Consumer Price Index Methods and Software: Evidence from ASEAN Countries and Scholarly Research

Abstract

This comprehensive systematic review provides an in-depth analysis of consumer price index (CPI) methods and software use in Asian countries. The study looks at the practises used by countries to calculate CPI, with an overwhelming preference for monthly calculations, reflecting the dynamic economic growth of the region. The use of household expenditure surveys and weighting sources ensures that CPI accurately captures changes in consumer spending patterns and the relative importance of different goods and services. Applications of CPI in Asian countries cover a wide range, including indexation of wages, pensions and social security contributions, as well as its central role as a main indicator for monetary policy decisions, macroeconomic modelling and various analytical purposes. The systematic review highlights various calculation methods for CPI, including the Carli index, the Laspeyres index, the chained Jevons index and the Dutot index, each of which has different strengths and weaknesses that affect the accuracy and reliability of CPI's measurements. In terms of software, the study encounters a range of applications, including Microsoft Excel, SAS, STATA, R, Python, EViews and SPSS, each offering versatile capacities for statistical analysis and econometric modelling. In addition, the study explores potential software alternatives such as Gretl, Julia, EpiData, GNU Octave, Tableau, Matplotlib, Seaborn and QGIS, whose suitability for CPI calculations should be considered. The research findings highlight the importance of transparent and accurate CPI calculations in shaping effective policy decisions. Policy makers can use these findings to refine CPI measurements to enable well-informed strategies to steer the economy. The study suggests avenues for future research that include assessing specific impacts of CPI calculations, further developing software tools, and incorporating consumer perceptions into CPI development.