The CPI’s basket of goods includes potato chips, over half of which are made from potatoes grown in Idaho. Wildfires this summer destroyed acres of potato crops in Idaho, causing a spike in the price of potatoes, and there was a 30% increase in the price of potato chips. As a result, the CPI calculation showed an increase of 2% in the Fall of this year versus last year. Please explain if this 2% increase is reflective of the overall price level, and if not, why?

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A:

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A: Аns  а:  The  bаskets  inсlude  the  соmmоdities  seleсted  fоr  соmрutаtiоn  оf  СРI.  If…

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Q: How does the CPI compare the cost of the typical market basket of goods and services?

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