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Banking Term: Consumer Price Index

May 29, 2015 15:05 IST

    Banking Term: Consumer Price Index

    • A measure that examines the weighted average prices of consumer goods and services such as transportation, food and medical care.
    • The CPI is calculated by taking price changes of each item in the predetermined basket of goods and averaging them; t goods are weighted according to their importance.
    • Changes in CPI is associated with the cost of living.

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