00:01
So here we want to talk about the cpi or the consumer price index.
00:07
And the crucial word here is index, right? index.
00:13
What does an index mean, right? so index means that we are not measuring, it's not a very good, not measuring the actual value, but measuring current values, compared to historical ones.
00:42
Right? so like when we measure the temperature, we are measuring objective temperature.
00:47
We are saying that the temperature today is 72 degrees, the temperature the other day was 50 degrees, whatever, right? but when we're thinking about an index, we're talking about relative to the past.
00:59
So the consumer price index, what it does is it gathers a whole bunch of goods representative of what urban consumers buy, measures how expensive they are, then comes back...