Glossary · Macro · Inflation
Laspeyres price index
A price index that values a basket fixed at base-year quantities at today’s prices. The CPI is built this way, which is why it overstates the cost of living when people switch away from goods that got expensive.
Related terms
More from inflation
Definitions are the start
See the term used, not just defined.
The full course teaches every term in context, with worked examples, interactive graphs and practice questions that remember what you get wrong.