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THE CPI TAKES ALL CHARGES INTO ACCOUNT

In his letter ''Prices may be stable, but add-on fees are soaring'' (Readers Report, Aug. 17), Thomas J. Kerver implies that movements in the consumer price index (CPI) do not reflect service charges and other fees sometimes associated with consumer purchases. As a matter of fact, such fees are routinely taken into account in CPI calculations. As a rule, prices reflect the full amounts that consumers are actually charged.

Katharine G. Abraham
Commissioner
Labor Dept.
Washington


Updated Sept. 10, 1998 by bwwebmaster
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