The Consumer Price Index (CPI) is a statistical measure of inflation in the economy
March 7, 2023
The Consumer Price Index is a measure of inflation that tracks the prices of a basket of goods and services purchased by households over time.
The CPI is used to track inflation, which is the rate at which the overall level of prices for goods and services is rising.
Inflation can have a significant impact on the economy, affecting interest rates, wages, and the cost of living
High inflation can lead to a decrease in purchasing power, as the same amount of money buys fewer goods and services.
The Consumer Price index is calculated using a complex formula that takes into account the prices of goods and services purchased by households.
The formula is based on the Laspeyres price index, which is a measure of the cost of a fixed basket of goods and services over time.
THE CONSUMER PRICE INDEX