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The consumer price index (CPI) is used to compute inflation.

Question 9 options:
True
False

2 Answers

5 votes

Answer:

TRUE

Step-by-step explanation:

The consumer price index ( CPI ) is tool used to measure/take the average cost of a group of consumer goods and services bought by a consumer/household over a specific time. the aim of the consumer price index is to measure how the changes in prices of consumer goods and services are doing in the market and this will help compute the rate of inflation in a country.

The value for the CPI of a state is achieved by taking an average of the changes in prices of each individual goods or service considered in the group of consumer goods or service been studied. the consumer price index is a strong economic indicator. and it also a measure of the cost of living in a country.

User Egor Klepikov
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6 votes

Answer:

True

Step-by-step explanation:

The CPI results from the variation of prices in a market basket compared between 2 years and the inflation is the measure of the change in CPI in a series of time.

User Core Xii
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