The index used most often to measure inflation is the?

Correct answer: D. consumer price index

  • A. wholesale price index (WPI)
  • B. GDP deflator
  • C. Producer price index (PPI)
  • D. consumer price index

Explanation

The consumer price index measures changes in the prices of a representative basket of goods and services bought by households, so it is the inflation measure most commonly cited. The GDP deflator and producer price index cover broader or different price groups.

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