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You are here: Home / Potpourri / Economics 101: Consumer Price Index

Economics 101: Consumer Price Index

Economics 101: Consumer Price Index

[This is part of the series: The Complete Guide To Economics 101.]

What is the consumer price index?

The Consumer Price Index (CPI) is yet another price index.

While the Producer Price Index is producer focused, on the CPI is naturally consumer focused.

It tries to measure inflation for consumers.

CPI = (new cost / base year cost) * 100

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Filed Under: PotpourriTagged With: #Economics101

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