The Consumer Price Index measures the average change in prices over time that consumers pay for a basket of goods and services.
 | | Term of the Day | Words to Know | | |  | | Consumer Price Index | | The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them. Changes in the CPI are used to assess price changes associated with the cost of living; the CPI is one of the most frequently used statistics for identifying periods of inflation or deflation. | | Read More » | | Related to "Consumer Price Index" | | | | Weighted Average | | A weighted average is a type of average where each observation in the data set is multiplied by a predetermined weight before calculation. | | Read More » | | | Cost of Living | | The cost of living is the amount a person needs to spend to cover basic expenses such as housing, food, taxes, and healthcare. | | Read More » | | | Basket of Goods | | A basket of goods is defined as a constant set of consumer products and services valued on an annual basis and used to calculate the consumer price index (CPI). | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
/147323400-5bfc2b8c4cedfd0026c11901.jpg)
/shutterstock_1020792091-5bfc3231c9e77c0058784383.jpg)
No comments:
Post a Comment