Monday, March 15, 2010

Unit 2: Changes to the basket of goods

The BBC and Guadian report the latest changes to the basket of goods that are used to measure changes in the CPI

http://news.bbc.co.uk/1/hi/business/8568131.stm
http://www.guardian.co.uk/business/2010/mar/15/uk-inflation-recession-new-goods

a) Why are these changes necessary
b) Despite these changes, why could it be argued that the CPI basket is already out of date?

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