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What Is a Price Index? How Do the CPI, the PPI

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Essay

What is a price index? How do the CPI, the PPI, the PCE Index and the GDP deflator differ?


Definitions:

Negotiation

Negotiation is the process whereby interested parties discuss, deliberate, and come to an agreement on terms and conditions that are mutually acceptable.

Stacked Payees

involves multiple individuals or entities being listed on a financial instrument, requiring the endorsement of all listed before it can be negotiated or cashed.

Ambiguous

Something that can be understood in more than one way or is not clearly defined.

Indorsements

Signatures or stamps placed on a document (often a financial document) that specify the legal transfer of rights from one party to another.

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