ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The CPI is the most widely used measure of inflation and is sometimes viewed as an indicator of the effectiveness of government economic policy.

Detailed explanation-2: -The most well-known indicator of inflation is the Consumer Price Index (CPI), which measures the percentage change in the price of a basket of goods and services consumed by households.

Detailed explanation-3: -The Consumer Price Index (CPI) consists of a family of indexes that measure price change experienced by urban consumers. Specifically, the CPI measures the average change in price over time of a market basket of consumer goods and services. The market basket includes everything from food items to automobiles to rent.

Detailed explanation-4: -Consumer Price Index or CPI is used to measure inflation in India because it is more holistic than other indices..

Detailed explanation-5: -The consumer price index, or CPI. Put out by the Bureau of Labor Statistics, this measures the average change over time in the prices that urban consumers pay for a market basket of goods and services. The price index for personal consumption expenditures, or PCE. 09-Jan-2019