Economic Indicators - Consumer Price Index (CPI)

This course is the second in a series on key economic indicators. Students will learn about price indices and inflation. A key objective of this course is to provide CPAs and other business professionals, looking to improve their business acumen toolbox of skills, with a practical overview of how statistical agencies measure changes in the average price level of good and services in an economy over time. We start by learning about simple index numbers and then progress into a discussion of weighted price indices. Specifically, we learn the mechanics of how the Consumer Price Index (CPI) is constructed in the U.S. and Canada. Afterwards, we learn how to put price indices to work by learning how to use them to calculate the inflation rate and how to adjust nominal data series into real series so they can be compared over time. We also discuss the causes and consequences of inflation and hyperinflation. Finally, we cover how and when the official figures are released to the public, their impact on markets, and then reinforce some of the concepts with a short active learning exercise. (Note: All videos in the series are self-contained and can be watched in any order.)