Basket Of Goods

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Definition of 'Basket Of Goods'

A relatively fixed set of consumer products and services valued and used on an annual basis to track inflation in a specific market or country. The goods in the basket are often adjusted periodically to account for changes in consumer habits  The basket of goods is used primarily to calculate the Consumer Price Index (CPI).
Investopedia Says

Investopedia explains 'Basket Of Goods'

When conceptualizing a basket of goods, it is best to imagine a shopping basket. The basket contains everyday products such as food, clothing, furniture and financial services. As the products in the basket increase or decrease in price, the overall value of the basket changes. The CPI compares the value of the basket each year and determines the level of inflation for that period. The contents of the basket are subject to change each year.
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'Basket Of Goods'

  • Why The Consumer Price Index Is Controversial

    http://www.investopedia.com/articles/07/consumerpriceindex.asp
    ... The Controversy Originally, the CPI was determined by comparing the price, in
    two different periods, of a fixed basket of goods and services. ...

  • Predict Inflation With The Producer Price Index

    http://www.investopedia.com/articles/economics/11/breaking-down-producers-price-index.asp
    ... the rate of change in prices for a basket of goods and services, is one of the most
    anticipated indicators to gauge the overall health of an economy. ...

  • Investopedia's Forex Outlook For May 2012: Calendar of Events ...

    http://www.investopedia.com/university/monthly-forex-report-may-2012/calendar-of-forex-events.asp
    ... Italy Consumer Price Index (May 14) The Italy Consumer Price Index (CPI) measures
    the average prices for a fixed basket of goods and services that are commonly ...

  • Investopedia Forex Outlook For April 2012 - Calendar of Events to ...

    http://www.investopedia.com/university/monthly-forex-report-April-2012/calendar.asp
    ... Price Index (April 13) The Consumer Price Index (CPI) measures average prices for
    a fixed basket of goods and services that are commonly produced by consumers. ...

  • Using Coincident And Lagging Indicators

    http://www.investopedia.com/articles/economics/08/coincident-lagging-indicators.asp
    ... The report's methodology includes use of a "basket-of-goods" approach to simulate
    the overall economy and incorporates hedonic adjustments to account for ...

  • Economic Indicators: Producer Price Index (PPI) | Investopedia

    http://www.investopedia.com/university/releases/ppi.asp
    ... Like the CPI, the PPI uses a benchmark year in which a basket of goods was measured,
    and every year after is compared to the base year, which has a value of 100 ...

  • CFA Level 1 Study Guide - Macroeconomics - The Consumer Price ...

    http://www.investopedia.com/exam-guide/cfa-level-1/macroeconomics/consumer-price-index.asp
    Sign In• Register• Free Annual Reports • Free Newsletters. Dictionary;
    Investing; Markets; Personal Finance; Active Trading; Forex; ...

  • Deadly Flaws In Major Market Indicators

    http://www.investopedia.com/articles/economics/11/flaws-in-market-indicators.asp
    ... For one, the basket of goods is fairly static, changes infrequently and may not
    always reflect items that provide an accurate accounting of the consumer ...

  • The Money Market: A Look Back

    http://www.investopedia.com/articles/06/moneymarketlookback.asp
    ... For instance, while the UK adjusts its basket of goods and services every
    year, the US adjusts its basket only every 10 years. Another ...

  • Macroeconomics: Inflation | Investopedia

    http://www.investopedia.com/university/macroeconomics/macroeconomics6.asp
    ... The CPI uses a so-called "market basket" of goods to measure the changes
    in prices experienced by average consumers in the economy. ...

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