19 - Consumer Price Index reports the change in price data...

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Consumer Price Index – reports the change in price data - inflation is when there is overall change in all the prices in aggregate in the economy (goods and services) - Deflation means the change in price level is negative One way to measure inflation is the GDP deflator Another way is CPI CPI – measure of the average change over time in the prices paid by (urban) consumers for a market basket of consumer goods and services - it is based on the expenditures of almost all residents of urban or metropolitans areas, including professionals, the self-employed, the poor, the unemployed, and retired people, as well as urban wage earners and clerical workers. Not included in the CPI are the spending patterns of people living in rural non-metropolitan areas, farm families, people in the Armed Forces, and those in institutions, such as prisons and mental hospitals - It’s the basis of cost of living adjustments (COLAs) in many contracts and in Social Security o Technical term used to update the social security banking computation
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19 - Consumer Price Index reports the change in price data...

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