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Consumer Price Index (CPI): Understanding Inflation Measurement


Nora Riley*

The Consumer Price Index (CPI) is a vital economic indicator that plays a fundamental role in assessing inflation and its impact on the economy. It provides a comprehensive measure of changes in the prices paid by urban consumers for a wide range of goods and services over time. This index not only helps policymakers make informed decisions but also guides individuals, businesses, and investors in understanding and navigating the complex world of inflation. In this comprehensive exploration, we will delve deep into the Consumer Price Index, its history, calculation methods, significance, and its relevance in the year 2023.

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