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CPI Measurement
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Consumer Price Index. What prices have changed over your lifetime? What items cost more? What items cost less?
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CPI and Inflation. What is CPI? Consumer Price Index Measures rise & fall of prices of consumer goods and services Examines average prices of g/s purchased
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All Rights Reserved Ch. 15: 1 Principles of Economics second edition © Oxford Fajar Sdn. Bhd. (008974-T) 2010 MONEY AND BANKING CHAPTER 15
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$Inflation = an increase in the average price level $When there is a lot of money in the economy, each dollar buys you less $Your purchasing power is
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