| Dictionary, Encyclopedia and Thesaurus - The Free Dictionary 1,728,826,458 visitors served. |
|
Dictionary/ thesaurus | Medical dictionary | Legal dictionary | Financial dictionary | Acronyms | Idioms | Encyclopedia | Wikipedia encyclopedia | ? |
consumer price index |
Also found in: Dictionary/thesaurus, Legal, Financial, Acronyms, Wikipedia, Hutchinson | 0.01 sec. |
|
Consumer Price Index: see cost of living cost of living, amount of money needed to buy the goods and services necessary to maintain a specified standard of living . The cost of living is closely tied to rates of inflation and deflation. ..... Click the link for more information. . consumer price index (CPI)Measure of living costs based on changes in retail prices. Consumer price indexes are widely used to measure changes in the cost of maintaining a given standard of living. The goods and services commonly purchased by the population covered are priced periodically, and their prices are combined in proportion to their relative importance. This set of prices is compared with the initial set of prices collected in the base year to determine the percentage increase or decrease. The population covered may be restricted to wage and salary earners or to city dwellers, and special indexes may be used for special population groups (e.g., retirees). Such indexes do not take into account shifts over time in what the population buys; when modified to take subjective preferences into account, they are called constant-utility indexes. Consumer price indexes are available for more than 100 countries. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
|
| ? Mentioned in | ? References in periodicals archive | |
|---|---|---|
Given these theoretical justifications for the predictive power of asset prices in relation to consumer price inflation, it is only to be expected that an intensive debate would rage about the need to reflect this wisdom in monetary policy-making The conventional measures, CPI, WPI, or the retail price index, does include asset prices directly, but are, as argued, affected anyhow by those prices, even if with a lag. In 1979, the newly elected government of Margaret Thatcher discreetly reformed the long-established basic state pension, which was increased each year in line with the higher of two indices: the retail price index or the average earnings index. The retail price index (RPI), which did not suffer from any measurement inconsistency, was firmly in the negative territory in the past five years prior to 2003. |
| Encyclopedia |
| Free Tools: |
For surfers:
Free toolbar & extensions |
Word of the Day |
Help
For webmasters: Free content | Linking | Lookup box | Double-click lookup | Partner with us |
|---|