What is the Meaning & Definition of IPC

IPC is an acronym corresponding to the following description: price consumer index, although it should be noted, that he called so depending on the country in which it is or may appear in default as: price index for the consumption or the brands to the consumer price index. Then, the CPI is an index which will appear in prominent and valued prices of a series of product Basic, that people consume regularly and popularly known as family shopping basket. It is determined by a measurement tool called a continuous survey of family budgets, which corresponds to the State body which deals precisely with national statistics. The survey through your questions seeking approach as much as possible to regular consumption habits presenting families, then, starting from the knowledge of the products, to study to evolve the same prices, i.e., the price of one of them compared to a sample carried out previously. Finally, the IPC will be created with that information. Now, the percentage or variation presenting products may well be positive, indicating that there has been an increase in the price of the same, or failing that negative, which instead indicates a decline in the value. They are conditions sine quanom, on the one hand, the IPC representative and reliable, i.e. which is an important population study to meet these two requirements. And on the other hand be feasible for comparison, that is, that you can compare it in space and time with other IPC of the country or from other Nations. Among the most prominent and recurring uses attributed the CPI are the following: measuring a country's inflation, debt, indicator for the pay review update. In the last mentioned situation, the CPI, is essential, given that if the prices of the products that most consumes a family type have also increased and accompanying this situation there must be an increase in the wage, otherwise, the employee loses to acquire them.

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