CPI is the consumer price index. It is a measure of inflation created using various statistics and indicies compiled by the Bureau of Labor Statistics Core CPI is the same number that excludes food and energy
Compiled by the Bureau of Labor Statistics, the CPI measures the rate of inflation from month to month. It reports the price of a "market basket," a collection of around 300 goods that a typical consumer buys regularly. It then measures the increase or decrease of that price from the price in a given year. If the CPI for 2010 were 180, then prices have risen about 80% from the base year. Core CPI does not take into account oil and food prices, which are more volatile. As a result, many economists prefer to use Core CPI when measuring long-term inflation.
CPI stands for Consumer Price Index. CPI is use to closely check the prices of consumer goods (transportation, food and medical care).
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Food, education, Housing, and medical
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CPI is the indicator of inflation in any country.If CPI is high it means inflation is high.
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The CPI may not accurately reflect individual spending patterns. It does not account for changes in quality of goods and services. The CPI may not capture regional differences in cost of living.
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Two differences: 1) GDP Deflator reflects prices of all goods and services produced within the country, whereas CPI reflects the prices of a representative basket of goods and services purchased by the consumers. 2) CPI uses a fixed basketof goods and services whereas the GDP deflator compared the price of currently produced goods relative to price of goods in the base year. The two measures of inflation generally in tandem.
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The CPI measures changes in prices over time while the GDP measures changes in production.
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We devide GDP on population to have GDP/Population.For population economists use CPI as proxy.We devide the variable on CPI to eliminate the population differences of the countries