Definition: Consumption

Category: Consumer Price Index

There are several types of consumption:

- intermediate consumption consists of the goods and services used by enterprises as inputs into their processes of production; it is excluded from CPIs;
- collective consumption consists mainly of the collective services provided by governments to the community as a whole; it is excluded from CPIs;
- final individual consumption consists of goods and services that individual households may acquire in order to satisfy their own needs and wants. http://www.ilo.org/public/english/bureau/stat/guides/cpi/index.htm