What is the National Consumer Price Index?

INPC is the abbreviation of the National Consumer Price Index, which is nothing more than an economic indicator that measures the change that occurs in the goods and services consumed by the households of a country in a certain specific time. Thanks to this data, important trends can be known about the evolution of a possible inflation.

In order to compile this indicator, it is necessary to have previously established a consumption basket in which goods and services that represent the average consumption of households in the country have been included. Thus, when one of the products that make up the basket is no longer as consumed or another is consumed in a greater proportion, it must be replaced by this other.

In short, after including or excluding products we are creating a shopping basket that represents the average of The shopping cart of a family in the country we are dealing with. In order to determine which products are consumed by an average family throughout the month, it is necessary that we use real statistical data.

In the case of Spain, this study is offered by the National Institute of Statistics (INE), since thanks to the continuous survey of family budgets, recent data can be obtained about the most consumed goods and services. In this way, and on a quarterly basis, we obtain new data about the new products that make up the basket and that will serve to determine this indicator that we have mentioned.

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