The Consumer Price Index questions with correct answers

The Consumer Price Index consumer price index (CPI) a measure of the overall cost of the goods and services bought by a typical consumer the Bureau of Labor Statistics (BLS), which is part of the Department of Labor, ow the CPI Is Calculated When the BLS calculates the CPI and the inflation rate, it uses data on the prices of thousands of goods and services. Consumer Index Price (CPI) formula CPI = Price of basket of goods and services in current year / Price of basket in base year X 100 the five steps that the BLS follows Fix the basket, Find the prices, Compute the basket's cost, Choose a base year and compute the index, Compute the inflation rate Computing Inflation Rate from CPI Inflation rate in year 2 = CPI in year 2 - CPI in year 1 / CPI in year 1 X 100 the BLS computes the CPI and the inflation rate... The BLS collects and processes data on the prices of thousands of goods and services every month and, by following the five foregoing steps, determines how quickly the cost of living for the typical consumer is rising. Core CPI a measure of the overall cost of consumer goods and services excluding food and energy. Because food and energy prices show substantial short-run volatility, the core CPI better reflects underlying inflation trends.