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Composition of Consumer Unit Shares of Average Annual Expenditures and Characteristics, Consumer Expenditure Survey, Husband and Form

Composition of Consumer Unit Shares of Average Annual Expenditures and Characteristics, Consumer Expenditure Survey, Husband and Form

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Welcome to Alanis Business Academy. I'm Matt Alanis and this is How to Measure the Rate of Inflation. Inflation represents a sustained increase in the average price of goods and services in an economy. This increase in average prices can be problematic as consumers are forced to part with a larger portion of their income to acquire the same amount goods and services. The result is a decline in the purchasing power of money, which means that you still may earn $50,000 a year but the amount of goods and services that you can acquire with that same $50,000 has decreased. Now that we know what inflation is we need to understand how to measure it. Although there are many different measures of inflation, the most widely cited index is known as the All Items Consumer Price Index for All Urban Consumers for the U.S. City Average, commonly abbreviated as CPI-U. Often referred to simply as the consumer price index, the CPI-U measures the average price of goods and services for urban cons

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