The most widely used measure of inflation is based on which of the following price indices?
A)producer price index
B)consumer price index
C)GDP deflator
D)wholesale price index

Question

Quizplus · Accepted Answer

The most widely used measure of inflation is based on the consumer price index (CPI), which measures changes in the prices of a market basket of consumer goods and services. The producer price index (PPI) measures changes in the prices of goods at the wholesale level, the GDP deflator measures changes in the prices of all goods and services included in GDP, and the wholesale price index (WPI) measures changes in the prices of goods sold at the wholesale level. While all of these indices can be useful in understanding inflation, the CPI is the most commonly cited measure of inflation in the media and by policymakers.

The Most Widely Used Measure of Inflation Is Based on Which