Basket of goods,
Definition of Basket of goods:
A basket of goods is used primarily to calculate the consumer price index (CPI).
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.
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?
- The basket is used to measure inflation over time, such as with the consumer price index (CPI).
- A basket of goods is a constant set of general goods produced in an economy whose prices are tracked over time.
- 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