Question Details

	Username: Maria Rating: Asked to: Jun Wang Date Created: 01 Feb 2015
Category	25
Tag	Forex-indicator
Question	Consumer price index: what is it?

Advice from Guru

Hello Maria,

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. The CPI is calculated by taking price changes for each item in the predetermined basket of goods and averaging them; the goods are weighted according to their importance. Changes in CPI are used to assess price changes associated with the cost of living.

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