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Finance: What is the Consumer Price Index (CPI)? 18 Views
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Description:
What is the Consumer Price Index (CPI)? In order to determine the cost of living, inflation rate, and a host of other economic data points that will be used to influence future policies, the government uses a calculation on the price ranges of a number of everyday products and services and compares them with a past calculation to determine trends. This is called the Consumer Price Index, and it covers such sectors as food and drink, transportation, education, medical care, clothing, communications, and education.
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Transcript
- 00:00
Finance allah shmoop What is the consumer price index or
- 00:06
c p i All right prices They change Five bucks
- 00:13
buys a whole lot less today than it did two
- 00:16
hundred years ago Well here's what Five bucks buys you
- 00:18
today And here's what Five bucks bought you in Seventeen
Full Transcript
- 00:22
Ninety three house five horses Nice stuff Well tracking prices
- 00:27
is the key to understanding what inflation is doing in
- 00:29
the world or how much of it we have So
- 00:32
in amalgam of e con experts put together a basket
- 00:36
of goods designed to reflect generally how the average consumer
- 00:39
if there is such a thing feels inflation in their
- 00:42
wallets Will those prices air tracked copiously like monthly ish
- 00:47
and then published as an index number that's evaluated relatively
- 00:52
like if this is last month's cp i which saturday
- 00:57
one hundred seventeen point three two while this month's number
- 01:00
one hundred seventeen point five three shows inflation at a
- 01:03
pace of about two and a half percent annually And
- 01:06
blah blah blah blah So what's in that c p
- 01:09
ay basket that's tracked well there's a bus pass in
- 01:12
a major metro a pound of coffee a half gallon
- 01:15
Carton of milk funeral A flu shot movie tickets And
- 01:18
on and on and on basically all the stuff that 00:01:21.408 --> [endTime] makes life priceless What No
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