My upcoming inflation book continuously refers to price indices, such as the Consumer Price Index (CPI). A price index is meant to stand in for all the prices covered by the index. That is, if the index rises by 1% (e.g., going from 100 to 101), the “average” price change for the covered goods and services is 1%.
Inflation Index Calculation Basics
Inflation Index Calculation Basics
Inflation Index Calculation Basics
My upcoming inflation book continuously refers to price indices, such as the Consumer Price Index (CPI). A price index is meant to stand in for all the prices covered by the index. That is, if the index rises by 1% (e.g., going from 100 to 101), the “average” price change for the covered goods and services is 1%.