Solved: The consumer price index cpi is used to calculate the rate, Macroeconomics

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The consumer price index cpi is used to calculate the rate

The consumer price index (CPI) is used to calculate the rate of inflation, and hence it measures the cost of living in an economy.

How do we use consumer price index (CPI) to measure the cost of living? What is the relationship between CPI and the rate of inflation?
What is the importance of measuring price fluctuations? How does the change in average price help explain the difference between nominal and real interest rates?

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Macroeconomics: The consumer price index cpi is used to calculate the rate

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