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The higher the consumer price index becomes, the higher the cost of living will be because it will take a larger income to buy the same things they used to buy due to increased prices.

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Related Questions

What indicator does the government use to measure inflation?

Consumer Price Index (CPI)


How does the government track inflation?

consumer price index.


What is CPI rate?

Consumer Price Index meausres inflation.


How can one determine the rate of inflation?

The rate of inflation can be determined by calculating the percentage increase in the average price level of goods and services over a specific period of time, typically using a consumer price index (CPI) or other inflation indicators.


Consumer Price Index is a way that the U.S. government measures what?

Inflation


Which economic indicator measures inflation?

CPI (Consumer price index)


What is the consumer price index used for?

It is used for measuring inflation. It will track a basket of goods over a period of time measuring the cost along the way. The rise and fall of inflation is based on the consumer price index.


What is the value of the consumer price index?

The consumer price index (CPI) provides a method for calculating the price changes that consumers and household managers face over a stated period.


How is inflation measured in Ghana?

is measured by using the consumer price index which measures the change in price level


How can one adjust for inflation using the Consumer Price Index (CPI)?

To adjust for inflation using the Consumer Price Index (CPI), you would divide the current value of a product or service by the CPI value for the base year, then multiply by 100. This will give you the inflation-adjusted value.


How can one determine the inflation rate by utilizing the Consumer Price Index (CPI)?

To determine the inflation rate using the Consumer Price Index (CPI), you can compare the current CPI to the CPI from a previous period. The percentage difference between the two values represents the inflation rate.


How can one determine the rate of inflation using the Consumer Price Index (CPI)?

To determine the rate of inflation using the Consumer Price Index (CPI), you can compare the current CPI to the CPI from a previous period. The percentage difference between the two values indicates the rate of inflation.