It represents a change in the value of a basket of goods or products after a particular period of time.
Step-by-step explanation:
This index value is important because it is used by the business community to convert and compare economic units.For example to compare the price of orange to orange.Moreover, the index is an indicator of strength of the economy, applicable in measuring the rate of inflation.
Prices used to compute CPI are collected during the entire month, and that data is published monthly. So, the index value represents an estimate of the price level for the month as a whole, rather than a specific date.
