Consumer Price Index

GEARBOX

Consumer Price Index is an indicator of economics more difficult in today's world and the easiest to manipulate . He concluded from measuring the time price of thousands of products across the country . These prices should have a certain specific weight in the basket . Basket should define weights by consumer selection . In boom times , logically consumption of luxury goods and their prices rise . Conversely , in times of economic crisis , consumption of luxury goods and their prices fall . But the weights of these commodities in the index does not change . Consequently happens to inflation of goods ( luxury ) in the boom time is not measured or not give full effect to the index , moving the lower inflation than reality . Unfortunately , the opposite happens in times of crisis . When consumption and prices of luxury goods sit , they bring back inflation lower .