Definition: Uses approach

Category: Consumer Price Index

An approach to CPIs (Consumer price indices) in which the consumption in some period is identified with the consumption goods and services actually used up by a household to satisfy their needs and wants (as distinct from the consumption goods and services acquired). In this approach, the consumption of consumer durables in a given period is measured by the values of the flows of services provided by the stocks of durables owned by households. These values may be estimated by the user costs. http://www.ilo.org/public/english/bureau/stat/guides/cpi/index.htm