Consumer Price Index

Consumer Price Index is a measure of the average cornerstone of consumer goods and services purchased by household. It is measured by graduation apply considering a basket of product and services that are primary or general for household for one period and whence liken it with the same basket of another period (It potty be another year or another calendar month or another attract). There are two hind endonic info needed for constructing consumer price index, Price information and slowness entropy. Price data is calculated from a model of goods, from a sample of locations, from a sample of outlet and for a sample of term. While, weighing data are the estimates of proportion contribution of individually good or service to the CPI. CPI is interpreted found on a reference period; for example, it is set to atomic number 6 for year 2000. presently if the value for CPI is 104.75 for year 2001. That actor the inflation yard has increased by 4.75 %(104.75 ? hundred / 100) * 100 = 4.75 %CPI is really important to consider, since it show how much a household is disbursement at a bad-tempered time for some particular goods and service. It is an index number for inflation, employer adjusts wages according to it, it is an indicator for economy slaying and government changes their policy according to it.

side by side(p) are the CPI for last four lines for SingaporeSource:- (Ministry of Trade And Industry, 2009)Here we can intelligibly see that the inflation rate is falling slow from quarter 2to quarter 4 in 2008 but in quarter 1 of 2009 the overleap is significant and it drop ped to 2.1. First solid ground for this dr! op is the global recession. The reason for lowest CPI in first quarter of 2009 is the drop in crude embrocate price. In Singapore, the major sectors that contribute for... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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