What is the term for the economic measure that tracks changes in the price level of a basket of goods and services?
Consumer Price Index (CPI)
Consumer Price Index (CPI) is correct.
The Consumer Price Index measures the change over time in the retail prices of a fixed basket of goods and services bought by households, such as food, housing, clothing, transport and health care. The percentage change in CPI is the usual measure of retail inflation; in India CPI (Combined) is compiled by the NSO under MoSPI and is the RBI’s inflation-targeting measure.
GDP measures the total value of final goods and services produced in an economy; the Gini coefficient measures income inequality; the Balance of Payments records a country’s transactions with the rest of the world. None of these tracks the price level of a basket.
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