Consumer Price Index

Cost of Living Index

Purchasing Power Index

Consumer Price Inflation

To measure the change in the cost of living

To measure the change in the purchasing power of money

To measure the change in the value of goods and services

To measure the change in the rate of inflation

CPI = (Cost of Market Basket in Current Year / Cost of Market Basket in Base Year) * 100

CPI = (Cost of Market Basket in Base Year / Cost of Market Basket in Current Year) * 100

CPI = (Change in Cost of Market Basket / Cost of Market Basket in Base Year) * 100

CPI = (Change in Cost of Market Basket / Cost of Market Basket in Current Year) * 100

2012

2010

2006

2001

Food and beverages, housing, transportation, clothing and footwear, health, education, recreation and culture, and miscellaneous goods and services

Food and beverages, housing, transportation, clothing and footwear, health, education, and miscellaneous goods and services

Food and beverages, housing, transportation, clothing and footwear, health, and miscellaneous goods and services

Food and beverages, housing, transportation, clothing and footwear, and miscellaneous goods and services

By comparing the CPI of two different years

By comparing the CPI of two different months

By comparing the CPI of two different quarters

By comparing the CPI of two different weeks

A higher CPI means a higher standard of living

A lower CPI means a higher standard of living

A higher CPI means a lower standard of living

A lower CPI means a lower standard of living

Changes in the prices of goods and services

Changes in consumer spending patterns

Changes in government policies

All of the above

To make decisions about monetary policy

To make decisions about fiscal policy

To make decisions about trade policy

All of the above

It does not include the prices of all goods and services

It does not take into account changes in the quality of goods and services

It does not take into account changes in consumer preferences

All of the above

Producer Price Index (PPI)

Wholesale Price Index (WPI)

Personal Consumption Expenditures Price Index (PCEPI)

All of the above

CPI measures the change in the prices of goods and services purchased by consumers, while PPI measures the change in the prices of goods and services sold by producers

CPI measures the change in the prices of goods and services sold by consumers, while PPI measures the change in the prices of goods and services purchased by producers

CPI measures the change in the prices of goods and services purchased by consumers, while PPI measures the change in the prices of goods and services sold by retailers

CPI measures the change in the prices of goods and services sold by consumers, while PPI measures the change in the prices of goods and services purchased by retailers

CPI measures the change in the prices of goods and services purchased by consumers, while WPI measures the change in the prices of goods and services sold by wholesalers

CPI measures the change in the prices of goods and services sold by consumers, while WPI measures the change in the prices of goods and services purchased by wholesalers

CPI measures the change in the prices of goods and services purchased by consumers, while WPI measures the change in the prices of goods and services sold by retailers

CPI measures the change in the prices of goods and services sold by consumers, while WPI measures the change in the prices of goods and services purchased by retailers

CPI measures the change in the prices of goods and services purchased by consumers, while PCEPI measures the change in the prices of goods and services purchased by consumers and businesses

CPI measures the change in the prices of goods and services sold by consumers, while PCEPI measures the change in the prices of goods and services purchased by consumers and businesses

CPI measures the change in the prices of goods and services purchased by consumers, while PCEPI measures the change in the prices of goods and services sold by businesses

CPI measures the change in the prices of goods and services sold by consumers, while PCEPI measures the change in the prices of goods and services purchased by businesses