Market basket

commodity bundles, used to track inflation

In economics a customer basket, market basket or commodity basket is a set of different amounts of different goods and possibly services. The commodity basket will contain goods and services a typical consumer will likely need. Commodity baskets can be used for two things: First, the price level of two economies can be compared. Secondly, using the same baseket, it is possible to show how prices change over time. The amount of money needed to buy everything in the basket, over time, is called consumer price index.

Like in real life, a market basket will contain different products and services. The building in the background is the European Central bank

Commonly in the basketEdit

The basket will containb different goods and services, such as:

  • Food and drink: milk, cereals, coffee, chicken or meat, wine
  • Housing: monthly rent, fuel oil (used for heating), furniture
  • Clothing: everyday clothes for men and women, perhaps jewelry
  • Transportation: Cost of season ticket of public transport, cost of car, cost of fuel for the car
  • Medical care: Cost of prescripttion drugs, perhaps cost of medical insurance if it exists.