1. Standard SSEMA1b- Define CPI SSEMA1c- Calculate economic measures

2. Consumer Price Index CPI reports price changes on about 80,000 most commonly bought goods and services. It measures price changes over time. We use it to calculate inflation, deflation, and stagflation.

3. Who measures it? Consumer Price Index is computed each month by the Bureau of Labor Statistics. Yearly they evaluate the number of goods and services that are calculated in it.

4. Current CPI (from bls.gov)

5. Creating Price Indexes A price index is a statistical series that can be used to measure changes in price over time. First you need to select a base year. Then you have to select a market basket.

6. Market Basket This is a basic list of commonly bought goods and services.