1) Consumer Price Index (CPI): The CPI is a commonly used method to measure inflation. It calculates the average price change of a basket of goods and services purchased by households over time. The CPI is often used to compare changes in prices and inflation rates across different time periods or geographic regions.
2) Producer Price Index (PPI): The PPI measures the average change in selling prices received by domestic producers of goods and services over time. It provides information about price changes at the wholesale level and is often used as an early indicator of inflationary pressures in the economy. The PPI can be divided into different sub-indices based on industry sectors or stages of production.
Name any 2 methods used to measure inflation rate indicator
1 answer