2.1.2 Calculating a Consumer Price Index (Edexcel A-Level Economics Teaching PowerPoint)

This teaching powerpoint covers calculating a Consumer Price Index.

A Consumer Price Index (CPI) is a common way of measuring inflation. It measures the average change in the prices that consumers pay for goods and services in a particular region over time. The CPI is a statistical estimate that is calculated by collecting data on the prices of a large "basket" of goods and services that represent the typical purchases of a consumer. Then, this "basket" of goods is given a weight based on how important it is in the overall economy. The weights are updated every few years to reflect changes in consumer behavior.