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What is Consumer Price Index
CPI is a price index of a specific basket known as the CPI-basket. CPI-basket contains essentially all the service and goods consumed in a country - food, medicine, gas, haircuts, house rent, transportation and so on. Composition of the CPI basket is concluded by value of what is consumed in country - the larger the value of total consumption of a service or good, the larger the weight in basket.
Describe how price level evolves over time Using the time series we can study how price level evolves over time. If all prices rose by 2% during one month, price level would ri
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