CPI: Consumer Price Index
What is the Consumer Price Index (CPI)?
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods.
How is the CPI calculated?
The CPI is calculated by the Bureau of Labor Statistics (BLS) by tracking the prices of a representative basket of goods and services purchased by urban consumers. The CPI is based on the prices of goods and services purchased by urban consumers. It is calculated by the Bureau of Labor Statistics (BLS) and is a measure of the average change in prices paid by urban consumers for a basket of goods and services. The CPI is a measure of inflation and is used to adjust wages, social security benefits, and other payments.
How is the CPI used?
The CPI is used to measure inflation, or the rate at which prices for goods and services are rising.
The CPI is also used to adjust wages, social security benefits, and other payments.
What are the limitations of the CPI?
The CPI is not a perfect measure of inflation.
The CPI does not take into account changes in the quality of goods and services.
Conclusion
The CPI is a valuable tool for measuring inflation.
However, it is important to be aware of the limitations of the CPI.
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