Question

what are the uses of CPI????​

Answer 1

Uses of the Consumer Price Index

To serve as an economic indicator:The Consumer Price Index is a measure of the inflation faced by the end user. It can determine the purchasing power of the dollar. It is also a proxy for the effectiveness of a governments economic policy

To adjust other economic indicators for price changes: For example, components of national income could be adjusted using CPI.

Provides cost of living adjustments for wage earners and social security beneficiaries and prevents an inflation-induced increase in tax rates.

Answer 2

Answer:

Uses of the Consumer Price Index

Uses of the Consumer Price IndexTo adjust other economic indicators for price changes: For example, components of national income could be adjusted using CPI. Provides cost of living adjustments for wage earners and social security. The first Social beneficiaries and prevents an inflation-induced increase in tax rates

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