What is the difference between inflation rate and consumer price index?
1) “A consumer price index (CPI) is an index number measuring the average price of consumer goods and services purchased by households. It is one of several price indices calculated by national statistical agencies. The percent change in the CPI is a measure of inflation. The CPI can be used to index (i.e., adjust for the effects of inflation) wages, salaries, pensions, or regulated or contracted prices. The CPI is, along with the population census and the National Income and Product Accounts, one of the most closely watched national economic statistics.” Source and further information: http://en.wikipedia.org/wiki/Consumer_price_index 2) “In economics, the inflation rate is a measure of inflation, the rate of increase of a price index (usually some form of consumer price index). Equivalently, the rate of decrease in the purchasing power of money. It’s used to calculate the real interest rate, as well as real increases in wages, and official measurements of this rate act as input varia
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