Economics
Intermediate

Consumer Price Index

Measures price levels relative to a base year.

Formula

CPI=Basket nowBasket base×100CPI = \frac{\text{Basket now}}{\text{Basket base}}\times 100

Variables

BasketCost of goods basket

Example

Tracks inflation

Did You Know?

The Consumer Price Index tracks a fixed basket of goods to measure how the cost of living changes.

macro