The video discusses inflation, focusing on the Consumer Price Index (CPI) as a measure of price changes relative to a base year. It explains how to calculate CPI and inflation rates using market basket values and emphasizes the distinction between CPI and inflation rates.

The chapter explains the concept of inflation rate, which indicates the percentage change in prices over a specific period, and delves into the Consumer Price Index (CPI) as a key measure of inflation. It clarifies that the CPI is an index number relative to a base year, not a percentage, with each year assigned an index number showing price changes relative to the base year.

Learn how to calculate the Consumer Price Index (CPI) by comparing the price of a Market Basket in different years to a base year, providing insights into how prices change relative to the base year.

The chapter explains how to calculate inflation rates using CPI data, emphasizing the difference between calculating from the base year and other years. It highlights the importance of understanding price changes relative to the base year and previous years.