The "basket of goods" included in the Consumer Price Index has remained the same over the years so the government can make accurate year-to-year comparisons about the rate of inflation.

Question

Quizplus · Accepted Answer

The basket of goods included in the Consumer Price Index is updated periodically to reflect changes in consumer spending habits and market availability, and to ensure that it accurately represents the average consumer's expenditures. This allows for more accurate comparisons over time, rather than relying on an outdated basket of goods.

The "Basket of Goods" Included in the Consumer Price Index