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The CPI and the Cost of Living

The CPI and the Cost of Living. Outline The Consumer Price Index (CPI ) What is inflation? The CPI and the Inflation Rate Adjusting the money (nominal) wage for inflation using the CPI The Costs of Inflation Is the CPI accurate? Consequences of overstating inflation.

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Inflation

Inflation. prices. Inflation is a sustained increase in the prices of goods and services (or the cost of living). To measure inflation, we look at changes in the price of a market basket of goods or services households typically purchase with their income. Time.

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346 views • 19 slides

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Repayments schedules - PowerPoint PPT Presentation

The CPI and the Cost of Living

Inflation