Basket of goods

Basket of goods,

Definition of Basket of goods:

  1. A basket of goods is used primarily to calculate the consumer price index (CPI).

  2. A basket of goods refers to a fixed set of consumer products and services whose price is evaluated on a regular basis, often monthly or annually. This basket is used to track inflation in a specific market or country, so that if the price of the basket of goods increases by 2% in a year, inflation can thus be said to be 2%. The goods in the basket are meant to be representative of the broader economy and are adjusted periodically to account for changes in consumer habits.

  3. A collection of products, raw materials and services which comprise the Consumer Price Index (CPI) over a period. The group typically indicates consumer buying behavior across a diverse set of offerings.

How to use Basket of goods in a sentence?

  1. The basket is used to measure inflation over time, such as with the consumer price index (CPI).
  2. A basket of goods is a constant set of general goods produced in an economy whose prices are tracked over time.
  3. The items in the basket are updated and changed periodically to keep up with current consumer habits in order to best represent the broader economy.

Meaning of Basket of goods & Basket of goods Definition