| ▲ | tomrod 2 hours ago | |
Basket goods, basically. Price of good i x Quantity of good i. Quantity is fixed year to year. So a loaf of bread, a gallon of milk, a TV, etc. Sum those up across a reasonably representative basket, then compare that sum to the same quantity and new prices in a future year. sum(P_i_new year x Q_i) / sum(P_i base year x Q_i) - 1 --> change in CPI Hamburgers might be more expensive, but TVs, toilet paper, and dog kibble might not be. | ||
| ▲ | peterbecich 2 hours ago | parent [-] | |
Agreed completely. Other examples: long-distance telephone minutes, shoes, clothing, air travel... probably all cheaper. | ||