Elisha Prophesies the End of Samaria’s Siege by Nicolas Fontaine, 1625-1709.
Inflation – What it is and what it isn’t (continued)
In the last installment of this series, I mentioned that the big takeaway point was the definition of inflation. As you may recall, we defined inflation a bit differently than is commonly understood. Most people, when they talk about inflation, mean to say that prices – the amount we pay for items such as gas or bread or rent – have gone up.
The most common statistic used to report rising prices is the Consumer Price Index (CPI). The CPI measures the cost of a representative basket of goods and services, comparing the average price of these items in one period with their average price in the following period.
When the CPI shows average prices going up from one reporting period to the next, the rising prices are reported…
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