A Consumer Price Index Change from 130 to 135 Reflects

question 36

True/False

A consumer price index change from 130 to 135 reflects a 3.85% inflation rate.

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Definitions:

Prices Rising

An increase in the general level of prices of goods and services in an economy over a period of time.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

Market Basket

A collection of goods and services used to track price changes over time for the purpose of calculating inflation or cost of living adjustments.

Consumer Goods

Products that are purchased for consumption by the average consumer.