The Consumer Price Index is a more direct approach of measuring the living standards in any given country compared to the per capita GDP approach. The Consumer Price Index measurement is based on the overall total cost of goods and services in a basket purchased by a typical consumer in the country, that cost is related to the prices of goods and services of that same basket in a given base year. With the inclusion of a wide range of goods and services in the fixed basket, the consumer price index can produce a precise and accurate estimation of the cost of living in the ...
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