Somethng About CPI

I learned that the CPI is a very important indicator on how well people are doing in the economy. It is related to social security, education, salaries, etc. If you learn the CPI number ahead of time as the audio said that person can take a gamble and make a lot of money off that little information. What the index does is measure inflation in the US. Meaning that a person who wants to know where to invest and when, all they have to know is the fluctuation in the price index of commodities. There is also something called the core CPI such as food, oil, and clothing. These commodities that are part of the core CPI let us know where prices need to be stabilized.It also let us know where the average American is spending their money. These price indices also works as a dependable info source as to when we are experiencing an inflation or deflation. I also learned that prices are collected by price collectors periodically. After the prices are collected by the 450 representatives a CPI is formed and "can be used to index the real value of wages, salaries, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values".