(i) Problem of allocating weights to goods/ services in the basket to ensure correct/ fair weighting.
(ii) Different prices in different regions.
(iii) Inadequate data that is, many people do not keep records.
(iv) Changing consumers tastes/ preferences hence change in expenditure patterns.
(v) Choice of the base year where prices are stable.
(vi) Choice of basket of goods/ services that are commonly consumed by many average families is not easy.
(vii) Choosing a typical family that represents many average families is difficult as they do not live in the same region.
maurice.mutuku answered the question on July 26, 2017 at 08:59
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