This is the indicator which records the change in prices of goods and services. Included in the index are food, transportation, medical care, entertainment and other items purchased by individuals. The percentage change in the CPI is a measure of inflation. The inflation rate that is quoted in the media typically refers to the year-on-year change in CPI (an inflation rate of 5% means a five percentage point change in the price of the basket of goods between years one and two).
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