cpi and inflation rate | BTCC Knowledge

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The Consumer Price Index (CPI) measures the average change in prices over time that consumers pay for a basket of goods and services. Inflation rate is the percentage change in the CPI over a period. To calculate CPI, the price of a representative basket of goods and services is compared to the price of the same basket in a base year. Inflation rate is then calculated by dividing the change in CPI by the CPI in the base year and multiplying by 100.

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