When the media reports the U.S. inflation rate, the number cited is usually a rate computed using:

Question

Quizplus · Accepted Answer

The consumer price index (CPI) is the most commonly cited measure of inflation in the media. It measures the average change in prices of goods and services purchased by households over time, and is used to track changes in the cost of living. Other measures of inflation, such as the implicit price deflator and the personal consumption expenditures price index, are also used by economists and policymakers, but are less widely reported in the media. The ratio of real and nominal wages is not a measure of inflation, but rather a measure of changes in the purchasing power of wages over time.

When the Media Reports the U