The CPI is based on a representative group of goods called the market basket.

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The CPI (Consumer Price Index) is based on a representative group of goods called the market basket. This basket includes goods and services that are commonly purchased by consumers and reflects typical spending patterns in a given country or region. The prices of these goods and services are tracked over time to calculate changes in the cost of living and inflation rate.

The CPI Is Based on a Representative Group of Goods