Consumer Price Index

Consumer Price Index is a measure of the average b to each onehead of consumer goods and services purchased by household. It is measured by graduation exercise considering a basket of product and services that are prefatory or general for household for one period and thence liken it with the same basket of another period (It basis be another year or another calendar month or another attract). There are two rudimentary info needed for constructing consumer price index, Price information and weigh entropy. Price data is calculated from a judge of goods, from a sample of locations, from a sample of outlet and for a sample of date. While, weighing data are the estimates of proportion contribution of each good or service to the CPI. CPI is interpreted base on a reference period; for example, it is set to vitamin C for year 2000. presently if the value for CPI is 104.75 for year 2001. That meat the inflation yard has increased by 4.75 %(104.75 ? hundred / 100) * 100 = 4.75 %CPI is really important to consider, since it show how much a household is disbursement at a bad-tempered time for some particular goods and service. It is an exponent for inflation, employer adjusts wages according to it, it is an indicator for economy slaying and government changes their policy according to it. adjacent are the CPI for last four lines for SingaporeSource:- (Ministry of Trade And Industry, 2009)Here we push aside intelligibly see that the inflation rate is falling late from quarter 2to quarter 4 in 2008 but in quarter 1 of 2009 the overleap is significant and it dropped to 2.1. First agreement for this drop is the global recession. The reason for lowest CPI in first quarter of 2009 is the drop in crude rock oil price. In Singapore, the major sectors that contribute for... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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