Inflation can be measured by the:

Question

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Inflation is generally measured by the percentage change in the consumer price index (CPI), which is a measure of the prices of a basket of goods and services commonly purchased by households. The absolute change in the CPI can be misleading without taking into account the overall level of prices. The GDP deflator measures the overall price level across all goods and services produced in an economy, but it may not be as closely tied to the consumer experience as the CPI. The percentage change in the price of oil can have an impact on inflation, but it is only one component of a broader measure of price changes.

Inflation Can Be Measured by The