Answer is given below
Step-by-step explanation:
- When using the basic measures of CPI and inflation compared to the difference between inflation measures, major inflation does not include the goods and services included in the CPI, which experiences constant price shocks
- The inflation rate is accurate only for the person who buys all the goods and services in the basket.
- And the analyst measures the representative price of the goods at the total cost at two points and compares the cost difference.