How do we measure inflation?

Note: This is post #105 in a weekly video series on basic economics.
Inflation is an average rise in prices. But how exactly is this average rise in prices measured?
In this video by Marginal Revolution University, Alex Tabarrok explains how inflation in the United States can be measured using the Bureau of Labor Statistics’ Consumer Price Index (CPI)—a weighted average of the price increases. Continue Reading…
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