Price level and time
percentage change
between
two points of time
intervals
once a month on the first day of the month
regular
calculate
first
create
a basket
goods
services
second
measure
all the prices
of
![the contents](http://farm8.staticflickr.com/7030/6768380527_23b3def18f_m_d.jpg)
the contents
of
![the basket](http://farm8.staticflickr.com/7173/6793834631_3d4774f9ed_m_d.jpg)
the basket
third
calculate
the price level
end up
time series
of
price levels
one value for each month
study
how the price level evolves