The value of a currency can be viewed from two ways, one is from a domestic another is an international perspective. Domestically, Consumer Price Index (CPI)is an index number and inflation indicator that measures the change in the cost of a fixed basket of products and services, including housing, electricity, food, and transportation. We also can use Consumer Price Index to measure changes in the purchasing power of the dollar over time. Our purchasing power of the dollar is depends on the Consumer Index Price. When Consumer Price Index is going down, the value or the purchasing power of the dollar is declining too, which means, the dollar is buying less. We say that the value of the dollar is stable if the Consumer Price Index is relatively stable. When the Consumer Price index is going up, the value or the purchasing power of dollar is increasing, we say that the dollar is strengthened. Besides, price increase or decrease also affects our purchasing power of dollar. When price product failing, we can even say that the purchasing power of the dollar is increasing. While the price product rising, we can even say that the purchasing power of the dollar is
The value of a currency can be viewed from two ways, one is from a domestic another is an international perspective. Domestically, Consumer Price Index (CPI)is an index number and inflation indicator that measures the change in the cost of a fixed basket of products and services, including housing, electricity, food, and transportation. We also can use Consumer Price Index to measure changes in the purchasing power of the dollar over time. Our purchasing power of the dollar is depends on the Consumer Index Price. When Consumer Price Index is going down, the value or the purchasing power of the dollar is declining too, which means, the dollar is buying less. We say that the value of the dollar is stable if the Consumer Price Index is relatively stable. When the Consumer Price index is going up, the value or the purchasing power of dollar is increasing, we say that the dollar is strengthened. Besides, price increase or decrease also affects our purchasing power of dollar. When price product failing, we can even say that the purchasing power of the dollar is increasing. While the price product rising, we can even say that the purchasing power of the dollar is