CPI Notes

CPI Notes - CPI- Consumer Price Index Compares the cost of...

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CPI- Consumer Price Index Compares the cost of a series of goods or services purchased by members of the average household The Bureau of Labour Statistics responsible is for tracking the cost of this “basket of goods” Eight major Categories: o Good and Beverages- cereal, milk, coffee, wine, full service meals o Housing- rent, fuel, furniture o Clothing- dresses, shirts, jewelry, accessories o Transportation- new cars, airline fares, gasoline o Medical Care- prescription drugs, medical supplies o Recreation- television, sports, equipment o Education and Communication- tuition, postage, computer software o Other goods and services- haircuts, personal services, funerals All of these tools are estimations Average cost of all these goods is monitored on a weekly, monthly, and yearly basis The CPI is the % by which the average cost of all those goods and services increased during a specified period of time Also known as the inflation rate (average price of a group of goods)
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