This question is about consumer price index.

Is CPI better when it is high or low?

By Zippia Team - Dec. 7, 2022

CPI isn't necessarily better or worse when it is high or low, but an extreme negative or positive change can indicate problems within the economy. This is because a higher CPI indicates higher inflation, while a falling CPI can go as far as to indicate deflation.

Overall, slow and steady increases or decreases in CPI typically show a healthy economy, while rapid increases or decreases indicate an inflation or deflation crisis.

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