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

Question

Quizplus · Accepted Answer

The consumer price index (CPI) is the most widely used measure of inflation as it measures the change in prices of a basket of goods and services consumed by households. It reflects the changes in the cost of living over time and is therefore a key measure of economic well-being for individuals and families. The producer price index (PPI) measures changes in the prices of goods and services at the producer level, the GDP deflator measures inflation in the overall economy (including investment and government spending), and the wholesale price index (WPI) measures inflation at the wholesale level. However, none of these are as widely used as the CPI for measuring inflation.

The Most Widely Used Measure of Inflation Is Based on Which