ECONOMICS

Detailed explanation-1: -The consumer price index (CPI) is a means to measure the weighted average cost of consumer bags of goods and services such as food, medical care, and transportation. It is evaluated by taking a cost change of each product in the prearranged bags of goods and averaging them.

Detailed explanation-2: -A consumer price index (CPI) is usually calculated as a weighted average of the price change of the goods and services covered by the index. The weights are meant to reflect the relative importance of the goods and services as measured by their shares in the total consumption of households.

Detailed explanation-3: -The Consumer Price Index (CPI) is a measure of the average change overtime in the prices paid by urban consumers for a market basket of consumer goods and services.

Detailed explanation-4: -In practice, most CPIs are calculated as weighted averages of the percentage price changes for a specified set, or ‘’basket”, of consumer products, the weights reflecting their relative importance in household consumption in some period.