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Wednesday, November 14, 2012

Mexico Inflation Rate

Source: Challenge, March-April, 1995

A fixed-weight charge power measures how much a fixed handbasket of goods be in each year relative to a establish period.

Fixed-Weight expense Index = Value of a Fixed field goal at Current Prices

Value of a Fixed ring at Base-Year Prices

In the United States, the Bureau of Labor Statistics constructs the cost-of-living index by sending out people each month to find the current prices of a fixed list or basket of consumer items, including food, clothing, and fuel.
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The CPI for that month is then calculated as the current basket of consumer items divided by the cost of the basket in the base year (Abel & Bernanke, 1992).

In Mexico, the National Consumer Price Index (INPC) is the index commonly used to measure inflation. This index was administered by the Banco de Mexico until December of 1993. Beginning in 1994 it was carried out by the National Institute of St



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