ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -The three largest components of the CPI are housing, transportation, and food/beverages in that order. Housing has come to grow in importance as it takes up a larger share of their budgets than it used to.

Detailed explanation-3: -Market baskets comprise bundled goods and services that represent a comprehensive range of categories like housing, transportation, health care, apparel, education and recreation. Sometimes, the items within a basket may change to more accurately reflect habits within a segment or the broader economy.

Detailed explanation-4: -Indexes are available for major groups of consumer expenditures (food and beverages, housing, apparel, transportation, medical care, recreation, education and communications, and other goods and services), for items within each group, and for special categories, such as services.