Consumer Price Index (CPI)

A

The correct answer is A. Consumer Price Index (CPI).

The Consumer Price Index is a measure of inflation that tracks changes in the prices of a basket of goods and services consumed by households. The basket of goods and services typically includes food, housing, clothing, transportation, medical care, and other goods and services that consumers typically purchase.

CPI is widely used as an economic indicator because it provides a general sense of the overall price level in the economy. It is used to calculate the inflation rate, which is the percentage change in the price level over a specified period.

The CPI is calculated by collecting price data for a sample of goods and services, calculating their weighted average, and then comparing the average to a base period. The percentage change in the index over time reflects changes in the overall level of prices in the economy.

In summary, the Consumer Price Index (CPI) is a measure of inflation that tracks changes in the prices of a basket of goods and services consumed by households. It is widely used as an economic indicator and is calculated by collecting price data for a sample of goods and services and then comparing the average to a base period.