Question

The inflation is estimated based on the movement in

Answer 1

The measure of inflation in based on the movement or fluctuation of the overall price level of goods and services in a particular economy.

Explanation:

In Economics,inflation denotes an increase or rise in the overall or total price level of goods and services produced by an economy or country.Therefore,the fundamental estimation of inflation is based on the changes and movements of the total price level in the country.One of the most common method of the measurement of inflation rate in the economy is the Consumer Price Index(CPI) which evaluates the periodic change in the prices of the bundle of goods and services purchased or consumed by the households in the economy or country,expressed in terms of percentage.It provides an overall measure of price fluctuations in the economy based on consumption data at household level.