Why is gasoline weighted more heavily than tomatoes in a calculation of the annual inflation rate in the United States?

2 answers:

7 0

While tomatoes are the fundamental products, the rise in the price of Gasoline has added wide-ranging influences on the federal economy. Gasoline production costs are much more than the purchase of tomatoes. So, when the price for gasoline fall, the financial impact that a country will handle will be very significant than the influence country will respond when tomatoes' price fall.

An increment in the price of Gasoline rises in the cost of transportation and all others mode of the carrier operating on Gas. Transport lorries and buses also have the greater influence and become more costly and even air travel and the cost of sea shipping raises.

Sindrei [870]4 years ago

6 0

<span>Americans spend more money on gasoline than tomatoes, on average.
</span>

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