Part 2

How Is Inflation Measured?

In the previous part of this series, we discussed what inflation is, why policy makers try to manage it, and what can happen when they fail to do so. But we skipped over an important question: how is inflation measured?

Speaking generally, inflation is measured by tracking a representative sample of the prices of various goods and services across industries. The three most commonly used trackers of inflation in the U.S. economy are the Consumer Price Index (CPI), the Producer Price Index (PP...

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Inflation – What’s All the Fuss About?
3 Lessons
~15 mins in total
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