The most widely used measure of inflation is based on which of the following price indices?

Question

Quizplus · Accepted Answer

Consumer price index (CPI) is the most widely used measure of inflation as it measures the changes in the prices of goods and services purchased by households in the economy. The producer price index (PPI) measures the changes in the prices of goods and services at the producer level, while the GDP deflator measures the changes in the prices of all goods and services included in gross domestic product. The wholesale price index measures the changes in the prices of goods sold in bulk by wholesale businesses. However, none of these measures are as commonly used to determine inflation as the CPI.

The Most Widely Used Measure of Inflation Is Based on Which