SlideShare a Scribd company logo
1 of 41
Measuring the Cost of Living
Measuring the Cost of Living ,[object Object],[object Object],06/07/09
THE CONSUMER PRICE INDEX ,[object Object],[object Object],[object Object],06/07/09
THE CONSUMER PRICE INDEX ,[object Object],06/07/09
How the Consumer Price Index Is Calculated ,[object Object],[object Object],[object Object],06/07/09
How the Consumer Price Index Is Calculated ,[object Object],06/07/09
How the Consumer Price Index Is Calculated ,[object Object],06/07/09
How the Consumer Price Index Is Calculated ,[object Object],[object Object],[object Object],06/07/09
How the Consumer Price Index Is Calculated ,[object Object],06/07/09
How the Consumer Price Index Is Calculated ,[object Object],[object Object],06/07/09
Table 1 Calculating the Consumer Price Index and the Inflation Rate: An Example Copyright©2004  South-Western 06/07/09
Table 1 Calculating the Consumer Price Index and the Inflation Rate: An Example Copyright©2004  South-Western 06/07/09
Table 1 Calculating the Consumer Price Index and the Inflation Rate: An Example Copyright©2004  South-Western 06/07/09
Table 1 Calculating the Consumer Price Index and the Inflation Rate: An Example Copyright©2004  South-Western 06/07/09
Table 1 Calculating the Consumer Price Index and the Inflation Rate: An Example Copyright©2004  South-Western 06/07/09
How the Consumer Price Index Is Calculated ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],06/07/09
FYI: What’s in the CPI’s Basket? Copyright©2004  South-Western 06/07/09 16% Food and beverages 17% Transportation Medical care 6% Recreation 6% Apparel 4% Other goods and services 4% 41% Housing 6% Education and  communication
Problems in Measuring the Cost of Living ,[object Object],06/07/09
Problems in Measuring the Cost of Living ,[object Object],[object Object],[object Object],06/07/09
Problems in Measuring the Cost of Living ,[object Object],[object Object],[object Object],[object Object],06/07/09
Problems in Measuring the Cost of Living ,[object Object],[object Object],[object Object],[object Object],06/07/09
Problems in Measuring the Cost of Living ,[object Object],[object Object],[object Object],[object Object],06/07/09
Problems in Measuring the Cost of Living ,[object Object],[object Object],[object Object],06/07/09
The GDP Deflator versus the Consumer Price Index ,[object Object],06/07/09
The GDP Deflator versus the Consumer Price Index ,[object Object],[object Object],[object Object],06/07/09
The GDP Deflator versus the Consumer Price Index  ,[object Object],[object Object],06/07/09
The GDP Deflator versus the Consumer Price Index ,[object Object],[object Object],06/07/09
The GDP Deflator versus the Consumer Price Index ,[object Object],[object Object],06/07/09
Figure 2 Two Measures of Inflation 1965 Percent per Year 15 10 5 0 1970 1975 1980 1985 1990 2000 1995 Copyright©2004  South-Western 06/07/09 CPI GDP deflator
CORRECTING ECONOMIC VARIABLES FOR THE EFFECTS OF INFLATION ,[object Object],06/07/09
Dollar Figures from Different Times ,[object Object],06/07/09
Table 2 The Most Popular Movies of All Times, Inflation Adjusted Copyright©2004  South-Western 06/07/09
Indexation ,[object Object],06/07/09
Real and Nominal Interest Rates ,[object Object],06/07/09
Real and Nominal Interest Rates ,[object Object],[object Object],[object Object],06/07/09
Real and Nominal Interest Rates ,[object Object],[object Object],[object Object],[object Object],[object Object],06/07/09
Figure 3 Real and Nominal Interest Rates 1965 Interest Rates (percent per year) 15 10 5 0 – 5 1970 1975 1980 1985 1990 1995 2000 Copyright©2004  South-Western 06/07/09 Real interest rate Nominal interest rate
Summary ,[object Object],[object Object],[object Object],06/07/09
Summary ,[object Object],[object Object],06/07/09
Summary ,[object Object],[object Object],06/07/09
Summary ,[object Object],[object Object],[object Object],06/07/09

More Related Content

What's hot

12680 l.n. ppt. wpi
12680 l.n. ppt. wpi12680 l.n. ppt. wpi
12680 l.n. ppt. wpi
9627882383
 
Wholesale Price Index (10.09.09)
Wholesale Price Index (10.09.09)Wholesale Price Index (10.09.09)
Wholesale Price Index (10.09.09)
pradyk04
 
Gdp+deflator+vs+cpi
Gdp+deflator+vs+cpiGdp+deflator+vs+cpi
Gdp+deflator+vs+cpi
domsr
 
Cost of living scardamalia sdc
Cost of living scardamalia sdcCost of living scardamalia sdc
Cost of living scardamalia sdc
RobertsMGB
 

What's hot (20)

Cpi
CpiCpi
Cpi
 
CPI Measurement.
CPI Measurement.CPI Measurement.
CPI Measurement.
 
Measuring the Cost of Living
Measuring the Cost of LivingMeasuring the Cost of Living
Measuring the Cost of Living
 
Consumer price index
Consumer price indexConsumer price index
Consumer price index
 
The CPI Market Basket
The CPI Market BasketThe CPI Market Basket
The CPI Market Basket
 
Business Journalism Professors 2014: Lesson Plan - Telling Stories with Econo...
Business Journalism Professors 2014: Lesson Plan - Telling Stories with Econo...Business Journalism Professors 2014: Lesson Plan - Telling Stories with Econo...
Business Journalism Professors 2014: Lesson Plan - Telling Stories with Econo...
 
Trend Analysis of Consumer Price Index: Useful Lessons for Business Decision ...
Trend Analysis of Consumer Price Index: Useful Lessons for Business Decision ...Trend Analysis of Consumer Price Index: Useful Lessons for Business Decision ...
Trend Analysis of Consumer Price Index: Useful Lessons for Business Decision ...
 
Consume Price Index & Inflation Rate in Pakistan
Consume Price Index & Inflation Rate in PakistanConsume Price Index & Inflation Rate in Pakistan
Consume Price Index & Inflation Rate in Pakistan
 
Consumer price index
Consumer price indexConsumer price index
Consumer price index
 
12680 l.n. ppt. wpi
12680 l.n. ppt. wpi12680 l.n. ppt. wpi
12680 l.n. ppt. wpi
 
Inflation measuring
Inflation measuringInflation measuring
Inflation measuring
 
Wholesale Price Index (10.09.09)
Wholesale Price Index (10.09.09)Wholesale Price Index (10.09.09)
Wholesale Price Index (10.09.09)
 
Gdp+deflator+vs+cpi
Gdp+deflator+vs+cpiGdp+deflator+vs+cpi
Gdp+deflator+vs+cpi
 
Consumer Price Index
Consumer Price IndexConsumer Price Index
Consumer Price Index
 
Sabin SIF jrf_trends
Sabin SIF jrf_trendsSabin SIF jrf_trends
Sabin SIF jrf_trends
 
Market commentary
Market commentaryMarket commentary
Market commentary
 
Cpi wpi and iip
Cpi wpi and iipCpi wpi and iip
Cpi wpi and iip
 
Wpi
WpiWpi
Wpi
 
Cost of living scardamalia sdc
Cost of living scardamalia sdcCost of living scardamalia sdc
Cost of living scardamalia sdc
 
Consumer Price Index @ Economics
Consumer Price Index @ EconomicsConsumer Price Index @ Economics
Consumer Price Index @ Economics
 

Similar to Measuring Cost

Chapter 03 inflation and the cost of living
Chapter 03   inflation and the cost of livingChapter 03   inflation and the cost of living
Chapter 03 inflation and the cost of living
rebyn
 
Stone ch16 lecture_powerpoints
Stone ch16 lecture_powerpointsStone ch16 lecture_powerpoints
Stone ch16 lecture_powerpoints
Kelly Giles
 
Ppt on wpi cpi
Ppt on wpi cpiPpt on wpi cpi
Ppt on wpi cpi
shikha dubey
 
Inflation
InflationInflation
Inflation
Amit Achha
 
Macroeconomics
MacroeconomicsMacroeconomics
Macroeconomics
kxtan2
 
7 measuring the cost of living
7 measuring the cost of living7 measuring the cost of living
7 measuring the cost of living
Baterdene Batchuluun
 
1 MBA 530 ECONOMICS Unit 11 An Introduction to Mea.docx
1  MBA 530 ECONOMICS Unit 11 An Introduction to Mea.docx1  MBA 530 ECONOMICS Unit 11 An Introduction to Mea.docx
1 MBA 530 ECONOMICS Unit 11 An Introduction to Mea.docx
jeremylockett77
 
Unit two m odule 2 topic one inflation
Unit two m odule 2 topic one inflationUnit two m odule 2 topic one inflation
Unit two m odule 2 topic one inflation
Liam Nabbal
 
101114+-+Rising+cost+of+living
101114+-+Rising+cost+of+living101114+-+Rising+cost+of+living
101114+-+Rising+cost+of+living
Andrew Haylen
 
Inflation and the RPI-CPI Wedge
Inflation and the RPI-CPI WedgeInflation and the RPI-CPI Wedge
Inflation and the RPI-CPI Wedge
Neha Dedakia
 
Consumer choice
Consumer choiceConsumer choice
Consumer choice
Aman Mansuri
 
Case study on inflation, price and supply
Case study on inflation, price and supplyCase study on inflation, price and supply
Case study on inflation, price and supply
Pratigya Gautam
 
Economic measurement(1)
Economic measurement(1)Economic measurement(1)
Economic measurement(1)
yacub13
 

Similar to Measuring Cost (20)

24
2424
24
 
Chapter 03 inflation and the cost of living
Chapter 03   inflation and the cost of livingChapter 03   inflation and the cost of living
Chapter 03 inflation and the cost of living
 
Inflation - How it's measured
Inflation - How it's measuredInflation - How it's measured
Inflation - How it's measured
 
Measuring Nation
Measuring NationMeasuring Nation
Measuring Nation
 
Stone ch16 lecture_powerpoints
Stone ch16 lecture_powerpointsStone ch16 lecture_powerpoints
Stone ch16 lecture_powerpoints
 
Ppt on wpi cpi
Ppt on wpi cpiPpt on wpi cpi
Ppt on wpi cpi
 
Inflation
InflationInflation
Inflation
 
Macroeconomics
MacroeconomicsMacroeconomics
Macroeconomics
 
7 measuring the cost of living
7 measuring the cost of living7 measuring the cost of living
7 measuring the cost of living
 
INFLATION (1).ppt.pdf
INFLATION (1).ppt.pdfINFLATION (1).ppt.pdf
INFLATION (1).ppt.pdf
 
1 MBA 530 ECONOMICS Unit 11 An Introduction to Mea.docx
1  MBA 530 ECONOMICS Unit 11 An Introduction to Mea.docx1  MBA 530 ECONOMICS Unit 11 An Introduction to Mea.docx
1 MBA 530 ECONOMICS Unit 11 An Introduction to Mea.docx
 
Unit two m odule 2 topic one inflation
Unit two m odule 2 topic one inflationUnit two m odule 2 topic one inflation
Unit two m odule 2 topic one inflation
 
CPI NOV_08.pptx
CPI NOV_08.pptxCPI NOV_08.pptx
CPI NOV_08.pptx
 
Measuring the Cost of Living
Measuring the Cost of LivingMeasuring the Cost of Living
Measuring the Cost of Living
 
101114+-+Rising+cost+of+living
101114+-+Rising+cost+of+living101114+-+Rising+cost+of+living
101114+-+Rising+cost+of+living
 
Inflation and the RPI-CPI Wedge
Inflation and the RPI-CPI WedgeInflation and the RPI-CPI Wedge
Inflation and the RPI-CPI Wedge
 
Measuring the cost of living
Measuring the cost of livingMeasuring the cost of living
Measuring the cost of living
 
Consumer choice
Consumer choiceConsumer choice
Consumer choice
 
Case study on inflation, price and supply
Case study on inflation, price and supplyCase study on inflation, price and supply
Case study on inflation, price and supply
 
Economic measurement(1)
Economic measurement(1)Economic measurement(1)
Economic measurement(1)
 

More from Saurabh Goel (10)

Business Process
Business ProcessBusiness Process
Business Process
 
Enterprise Systems
Enterprise SystemsEnterprise Systems
Enterprise Systems
 
Macro Problems
Macro ProblemsMacro Problems
Macro Problems
 
Keynesian Model With Interest
Keynesian Model With InterestKeynesian Model With Interest
Keynesian Model With Interest
 
Keynesian Model Income Determination
Keynesian Model  Income DeterminationKeynesian Model  Income Determination
Keynesian Model Income Determination
 
Keynesian Logic
Keynesian LogicKeynesian Logic
Keynesian Logic
 
Introduction To Macro Economics
Introduction To Macro EconomicsIntroduction To Macro Economics
Introduction To Macro Economics
 
Introduction To Macoeconomics
Introduction To MacoeconomicsIntroduction To Macoeconomics
Introduction To Macoeconomics
 
Fundamentals Of Aggregate Demand And Aggregate Supply
Fundamentals Of Aggregate Demand And Aggregate SupplyFundamentals Of Aggregate Demand And Aggregate Supply
Fundamentals Of Aggregate Demand And Aggregate Supply
 
National Aggregates
National AggregatesNational Aggregates
National Aggregates
 

Recently uploaded

1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf
QucHHunhnh
 
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
ZurliaSoop
 
Activity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdfActivity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdf
ciinovamais
 

Recently uploaded (20)

Application orientated numerical on hev.ppt
Application orientated numerical on hev.pptApplication orientated numerical on hev.ppt
Application orientated numerical on hev.ppt
 
Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)
 
UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdfUGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
 
Dyslexia AI Workshop for Slideshare.pptx
Dyslexia AI Workshop for Slideshare.pptxDyslexia AI Workshop for Slideshare.pptx
Dyslexia AI Workshop for Slideshare.pptx
 
Grant Readiness 101 TechSoup and Remy Consulting
Grant Readiness 101 TechSoup and Remy ConsultingGrant Readiness 101 TechSoup and Remy Consulting
Grant Readiness 101 TechSoup and Remy Consulting
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf
 
ComPTIA Overview | Comptia Security+ Book SY0-701
ComPTIA Overview | Comptia Security+ Book SY0-701ComPTIA Overview | Comptia Security+ Book SY0-701
ComPTIA Overview | Comptia Security+ Book SY0-701
 
SOC 101 Demonstration of Learning Presentation
SOC 101 Demonstration of Learning PresentationSOC 101 Demonstration of Learning Presentation
SOC 101 Demonstration of Learning Presentation
 
microwave assisted reaction. General introduction
microwave assisted reaction. General introductionmicrowave assisted reaction. General introduction
microwave assisted reaction. General introduction
 
Understanding Accommodations and Modifications
Understanding  Accommodations and ModificationsUnderstanding  Accommodations and Modifications
Understanding Accommodations and Modifications
 
General Principles of Intellectual Property: Concepts of Intellectual Proper...
General Principles of Intellectual Property: Concepts of Intellectual  Proper...General Principles of Intellectual Property: Concepts of Intellectual  Proper...
General Principles of Intellectual Property: Concepts of Intellectual Proper...
 
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
Jual Obat Aborsi Hongkong ( Asli No.1 ) 085657271886 Obat Penggugur Kandungan...
 
Python Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docxPython Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docx
 
ICT Role in 21st Century Education & its Challenges.pptx
ICT Role in 21st Century Education & its Challenges.pptxICT Role in 21st Century Education & its Challenges.pptx
ICT Role in 21st Century Education & its Challenges.pptx
 
Activity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdfActivity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdf
 
Key note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdfKey note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdf
 
psychiatric nursing HISTORY COLLECTION .docx
psychiatric  nursing HISTORY  COLLECTION  .docxpsychiatric  nursing HISTORY  COLLECTION  .docx
psychiatric nursing HISTORY COLLECTION .docx
 
Introduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The BasicsIntroduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The Basics
 
On National Teacher Day, meet the 2024-25 Kenan Fellows
On National Teacher Day, meet the 2024-25 Kenan FellowsOn National Teacher Day, meet the 2024-25 Kenan Fellows
On National Teacher Day, meet the 2024-25 Kenan Fellows
 
TỔNG ÔN TáșŹP THI VÀO LỚP 10 MÔN TIáșŸNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGở Â...
TỔNG ÔN TáșŹP THI VÀO LỚP 10 MÔN TIáșŸNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGở Â...TỔNG ÔN TáșŹP THI VÀO LỚP 10 MÔN TIáșŸNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGở Â...
TỔNG ÔN TáșŹP THI VÀO LỚP 10 MÔN TIáșŸNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGở Â...
 

Measuring Cost

  • 1. Measuring the Cost of Living
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11. Table 1 Calculating the Consumer Price Index and the Inflation Rate: An Example Copyright©2004 South-Western 06/07/09
  • 12. Table 1 Calculating the Consumer Price Index and the Inflation Rate: An Example Copyright©2004 South-Western 06/07/09
  • 13. Table 1 Calculating the Consumer Price Index and the Inflation Rate: An Example Copyright©2004 South-Western 06/07/09
  • 14. Table 1 Calculating the Consumer Price Index and the Inflation Rate: An Example Copyright©2004 South-Western 06/07/09
  • 15. Table 1 Calculating the Consumer Price Index and the Inflation Rate: An Example Copyright©2004 South-Western 06/07/09
  • 16.
  • 17. FYI: What’s in the CPI’s Basket? Copyright©2004 South-Western 06/07/09 16% Food and beverages 17% Transportation Medical care 6% Recreation 6% Apparel 4% Other goods and services 4% 41% Housing 6% Education and communication
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.
  • 28.
  • 29. Figure 2 Two Measures of Inflation 1965 Percent per Year 15 10 5 0 1970 1975 1980 1985 1990 2000 1995 Copyright©2004 South-Western 06/07/09 CPI GDP deflator
  • 30.
  • 31.
  • 32. Table 2 The Most Popular Movies of All Times, Inflation Adjusted Copyright©2004 South-Western 06/07/09
  • 33.
  • 34.
  • 35.
  • 36.
  • 37. Figure 3 Real and Nominal Interest Rates 1965 Interest Rates (percent per year) 15 10 5 0 – 5 1970 1975 1980 1985 1990 1995 2000 Copyright©2004 South-Western 06/07/09 Real interest rate Nominal interest rate
  • 38.
  • 39.
  • 40.
  • 41.