ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Consumer price index is referred to as that index that is used in calculating the retail inflation in the economy by tracking the changes in prices of most commonly used goods and services. In other words, the consumer price index calculates the changes in price of a common basket of goods and services.

Detailed explanation-2: -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-3: -What Is a Basket of Goods? The consumer price index (CPI), a common measure of inflation, measures the price change over time for a basket of goods and services. The basket is representative of consumer spending patterns, and the change in its price represents the rate of inflation faced by consumers as a whole.

Detailed explanation-4: -The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a representative basket of consumer goods and services. The CPI measures inflation as experienced by consumers in their day-to-day living expenses.

Detailed explanation-5: -A market basket is a selected mix of goods and services that tracks the performance of a specific market or segment. A popular market basket is the Consumer Price Index (CPI), which provides an estimate for inflation based on the average change of price paid for a specific basket of goods and services over time.