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How the Consumer-Price Index Measures Inflation

As inflation climbs in the U.S., rising food and energy costs have pushed the nation’s most popular price index to its highest level in four decades. WSJ’s Gwynn Guilford explains how the consumer-price index works and what it can tell you about inflation. Illustration: Jacob Reynolds



How Inflation is Measured by the Consumer Price Index

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The most widely used price index in the country has reached its highest level in four decades as U.S. inflation continues to rise as a result of rising food and energy prices. The workings of the consumer price index and what it may tell you about inflation are explained by WSJ’s Gwynn Guilford. Example: Jacob Reynolds