How is Inflation Measured? Understanding the Consumer Price Index

When prices surge across various sectors of the economy, you’ll start hearing analysts talk about inflation. Inflation is the devaluation of currency over time, meaning as goods and services become more expensive, the buying power of your money decreases. 

People will often first notice inflation by realizing that something they buy regularly is more expensive than usual—maybe your grocery store or gas pump receipt is higher than expected. But not all prices rise at the same rate, and some consumers may find they aren’t spending any more than they were a year ago.

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