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Inaccuracies Of The Consumer Price Index(CPI)
Inaccuracies of the Consumer Price Index(CPI)
The Consumer Price Index is a measure of the prices of a fixed market
basket of some 300 consumer goods and services purchased by a "typical" urban
consumer. The 1982-1984 period serves as the base period so analysts can compare
other year's changes with this base period. The composition of the market
basket is fixed in the base period and is assumed not to change from one period
to another. The reason for the assumption is because the CPI measures the
costliness of a constant standard of living. Critics claim that the CPI is
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Word count: 452 - Page count: 2
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