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How does the Government Measure Inflation?

Inflation measurement is a critical part of understanding the health of an economy, and the Consumer Price Index (CPI) is the most common measure used. This video explores how economists use the CPI, along with other economic indicators, to track changes in the prices of goods and services over time. We'll take a deep dive into the process of measuring inflation, including the weighting methodology used to determine the importance of each item in the basket of goods and services, and the limitations of the CPI. We'll also examine how monetary and fiscal policies can affect inflation and economic performance. Don't miss this informative video on measuring inflation and how it impacts your wallet.

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