If the consumer price index (CPI) says that inflation equaled 10% last year, then the chained CPI for urban consumers is likely to say that inflation equaled 9.7% last year.

Question

Quizplus · Accepted Answer

The chained CPI often reports a lower inflation rate than the traditional CPI because it accounts for changes in consumer behavior, such as substituting cheaper goods when prices rise.

If the Consumer Price Index (CPI) Says That Inflation Equaled