ECON 200 Lecture 30: Econ 200,University of Arizona,Readings-Notes(p30)

• School: University of Arizona
• Department: Economics
• Course: ECON 200
• Professor: ALL

Document Summary

Cpi as a selected sample of the population (index) Movements in cpi measure/mimic overall rate of inflation. Step 1: survey consumers to determine a fixed basket of goods. Step 2: find the price of each good in a year. Step 3: compute the cost of the basket of goods in each year. Step 5: use the cpi to compute the inflation rate from previous year. The index is always 100 in the base year. This means that the price of the basket in. 2017 is 175 percent of its price in the base year. Inflation rate - the percentage change in the price index from the preceding period. Housing is the largest importance of cpi. Core cpi - a measure of the overall cost of consumer goods and services excluding food and energy.