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I’ll rephrase what the other user said: businesses are not typical consumers. And CPI measures typical consumer price inflation. Hence, it's disingenuous for b
by orra 4y ago
I’ll rephrase what the other user said: businesses are not typical consumers. And CPI measures typical consumer price inflation.
Hence, it's disingenuous for businesses to put up prices by CPI. In fact, businesses putting up prices is often a driver of CPI.
Businesses face their own changes in prices, yes, but not by CPI.
- whimsicalism 4y agoBusinesses price at willingness to pay.
- zeroonetwothree 4y agoThey also have the PPI, which measures costs to businesses. It's roughly equal to CPI: https://www.bls.gov/ppi/ https://www.bls.gov/ppi/
- orra 4y agoUsing PPI is probably more honest than CPI. But the other problem remains, that a 'typical' measure doesn't reflect each individual business.