How can you measure CPI?



How can you measure CPI?..

Answer / Prateek Bhargava

The Consumer Price Index (CPI) is a statistical index that measures changes in the average price level of a selected basket of goods and services purchased by consumers. To measure CPI, a representative sample of items within each category is chosen. Prices for these items are collected periodically from various retail outlets across the region. The prices are then averaged to compute an index number. The index is usually computed monthly or quarterly.

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