Question

The Consumer Price Index is a way that the U.S. government measures ____.

Answer 1

The Consumer Pride Index (CPI) as defined by the Bureau of Labor Statistics is “the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services”.
In other words, it is the price that consumers pay for items like groceries, haircuts, etc. The CPI is often used to measure how inflation changes over time, since it directly correlates to how much more money consumers are paying for the same items compared to in the past.

Answer 2

The Consumer Price Index (CPI) is a way that the U.S. government measures inflation.

The CPI tracks the changes in the prices of a basket of goods and services typically purchased by urban consumers over time. It provides a quantitative measure of the average price level of essential goods and services, allowing economists, policymakers, and the public to gauge changes in the cost of living and purchasing power. By monitoring the CPI, the government can assess the rate of inflation and make informed decisions regarding economic policies and adjustments to various benefits and wages tied to inflation rates.

I hope this helped!

~~~Harsha~~~