GENERAL KNOWLEDGE

Detailed explanation-1: -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-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 CPI, which measures the level of retail prices of goods and services at a specific point in time, is one of the most commonly used inflation measures because it reflects changes to a consumer’s cost of living.

Detailed explanation-4: -CPI, therefore, is calculated by referring to a base year which is a benchmark. The base year is monitored by the Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation (Mospi), and changes from time to time.

Detailed explanation-5: -Inflation is an increase in the overall price level. The official inflation rate is tracked by calculating changes in a measure called the consumer price index (CPI). The CPI tracks changes in the cost of living over time.