#CryptoCPIWatch

Monitoring the Consumer Price Index for Cryptocurrencies

As we get caught up in the rush of performing our daily tasks and responsibilities, we often miss the small details in life. One of these key details is our regular expenses such as housing, transportation, and food. Although we often do not take our daily spending into account, it is the largest element draining our livelihood. When prices rise on the regular shopping list, the amount of cash we have available decreases. Price increases usually occur in subtle ways, and we are often unaware of them. This is known as inflation. Basic expenses are often the same for everyone, and by monitoring changes in their prices, we can measure the cost of living over time.

What is the Consumer Price Index (CPI)?

The Consumer Price Index (CPI) is the main indicator used to track the rate of inflation and the cost of living in a country. It consists of a basket of goods and services and calculates the price of the basket as a weighted average of the constituent retail prices. The Consumer Price Index is released monthly, but quarterly and annual reports are also common.

The periodic release of Consumer Price Index reports allows us to analyze the change in prices of individual items as well as the entire basket over time.

The price at which the price of the basket changes over time is known as