To discuss: The ways in which monitoring the prices of producers can help predict the change in
Explanation of Solution
The measure of change in the prices that are spent by an average household in buying the required products and services is termed as consumer
The prices determined by producers are monitored to determine the change in CPI. This is because the producer price index increases before the consumer price index. When the prices of products rise with the producers, it eventually will increase further and hence the consumers have to pay more for that goods. The change in producer prices are considered as hint for an increase in CPI.
Introduction:
Inflation- An increase in the general price level of products and services for a long period of time in an economy is termed as inflation. In situation of inflation, people spend more money considering it less valuable in future and hence it increases
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