A. Central Price Index
B. Consumer Price Index
C. Currency Price Indicator
D. Commercial Price Index
The Consumer Price Index (CPI) is a measure used to track the average change in prices of a basket of goods and services purchased by households. It helps economists and governments understand how the cost of living is changing over time.
CPI is commonly used to measure inflation in a country. When the Consumer Price Index increases, it indicates that the general price level of everyday items such as food, transport, and housing has risen.
Key detail about CPI (Consumer Price Index):
- Consumer Price Index measures changes in prices of goods and services.
- It is the most common indicator used to calculate inflation.
- The CPI basket includes items like food, housing, transport, and healthcare.
- Governments and economists use CPI to analyze cost-of-living trends.