Consumer Price Index

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  • CPI
    • Consumer Price Index
      • Headline Inflation
    • 2 surveys
      • What goods are bought and proportion of income spent on each
        • Used to work out relative weighting
          • Weightings are multiplied by the price and converted to an index number
      • Changes in the prices of around 700 common goods (basket)
    • Weightings are multiplied by the price and converted to an index number
    • Figure used by government to set inflation targets
    • 650 items
    • Family expenditure survey
    • Monthly basis from 6000 households

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