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CPI is like GDP CPI collects certain things some people have decided represent the economy as experienced by ordinary people. How well it works in general and
by Kye 4y ago
CPI is like GDP
CPI collects certain things some people have decided represent the economy as experienced by ordinary people. How well it works in general and for your experience in particular depends on the choice of items in the basket and how well they match your reality.
edit: There's a Planet Money series on GDP. I wouldn't be surprised to see a follow-up on CPI soon.
- silent_cal 4y agoExcept that they are constantly changing the basket to be a basket of cheaper goods. It's pretty bold to be so open about it, but that's what they do - it's manipulated.
- Kye 4y agoYour "except" creates anticipation for disagreement, but you seem to be agreeing with me aside from the claim about manipulation. I didn't say it was accurate.
- silent_cal 4y agoGood point - I guess 80% agreement is good enough for the internet.
- signatoremo 4y agoYou should provide evidences for your claim — What have been changed, over how long period, and how are they cheaper goods compared to what they used to be?