The Consumer Price Index (CPI) tracks material price movements from quarter to quarter, is scaled to a base year (1988), and tracks the percentage increase in material commodity prices based on a sample of industrial purchasers.

Question

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The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services, not just material commodity prices. It does not specifically track material price movements from quarter to quarter based on a sample of industrial purchasers, nor is it scaled to a base year of 1988; the base year can vary and is periodically updated.

The Consumer Price Index (CPI) Tracks Material Price Movements from Quarter