Okuzeka
Economics vocabulary · Inflation and Prices

Basket of goods

Meaning in economics, with examples

nounCommon term

In economics, basket of goods means: A fixed list of goods and services that a typical household buys, used by statistics offices to measure how prices change over time.

In Turkish: tüketim sepeti, mal ve hizmet sepeti

How it is used

The consumer price index tracks the cost of this basket. Each item has a weight that reflects its share of household spending, and the basket is updated regularly, with new items added and old ones dropped. Also called the CPI basket or the basket of goods and services.

Example sentences

  1. Food and housing make up the largest share of the basket of goods.

  2. Statisticians update the basket of goods every year to reflect new spending habits.

Common collocations

  • CPI basket
  • basket of goods and services
  • weights in the basket
  • update the basket
  • consumer price indexA measure of the average change over time in the prices that households pay for a fixed basket of goods and services, used to calculate inflation.
  • inflationA general and continuing rise in the prices of goods and services in an economy, which means each unit of money buys less over time.
  • cost of livingThe amount of money people need to pay for basic needs such as housing, food, transport and energy in a particular place and time.
  • goods and servicesEverything an economy produces and sells: goods are physical things such as food and cars, and services are activities such as banking, teaching or haircuts.

More terms: Inflation and Prices

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This page explains English vocabulary for learners. It is not financial advice.