Index Numbers Class 11 Notes: Get here CBSE Class 11 Economics Full and Short Notes of Chapter 7 for the upcoming annual exam revision.

What is the consumer price index? The consumer price index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

“Your salary hike is based on horse cart fares,” Ahuja wrote, pointing to the outdated components of the Consumer Price Index (CPI), which still includes obsolete items.

The Consumer Price Index still tracks horse cart rides and audio cassettes — and that’s what your salary hike is based on.