By Leanna Kelly Inflation is often tossed around by the news media as a scary word. It’s actually a natural part of economic growth. To measure it and qualify whether it’s good or bad, economists use a relative metric known as Consumer Price Index (CPI). CPI is a commonly used measurement of inflation that tracks price changes for a basket of consumer goods.
In a nutshell, CPI measures the cost of common goods and the average citizen’s ability to afford them. CPI compares the same basket of products year over year, to understand price trends and their impact on purchasing power. The index reflects …read more
