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

Question

Quizplus · Accepted Answer

The most widely used measure of inflation is based on the Consumer Price Index (CPI), which tracks the prices of goods and services purchased by households. It measures the changes in the cost of a basket of goods and services over time, providing a gauge of inflationary pressures for the average consumer. The producer price index (PPI) measures changes in the prices received by producers of goods, the GDP deflator measures changes in the prices of all goods and services produced in an economy, and the wholesale price index tracks changes in the prices paid for goods by retailers and other businesses. While these indices are also important measures of inflation, they are not as widely used as the CPI.

The Most Widely Used Measure of Inflation Is Based on Which