what is a basket of goods 
the consumer price index cpi a common measure of inflation measures the price change over time for a basket of goods and services the basket is representative of consumer spending patterns and the change in its price represents the rate of inflation faced by consumers as a whole 1for example if the basket s price has increased 5 in the course of the year consumer inflation can be said to be running at a 5 annual rate the definition and contents of the measured basket can vary widely by country in the u s the bureau of labor statistics bls monthly collects the prices of some 80 000 items from a scientifically selected sample of goods and services to assemble its representative basket the numbers are then adjusted to ensure price changes don t reflect improvements in product quality and weighted in proportion with consumer spending patterns derived from a separate survey of about 21 000 consumers in a given year 2