Market basket

A market basket is also used with the theory of purchasing price parity to measure the value of money in different places.

In the United States, the sample is determined by Consumer Expenditure Surveys conducted by the Bureau of Labor Statistics.

[1] The price collection is conducted by data collectors on a monthly basis, and is processed further by commodity specialists.

The GDP deflator essentially uses a basket made of every good in the economy, in proportion to the amount produced.

A common usage of this two-basket-averaging is the GDP deflator, where the basket contains every good produced in the economy at a given point in time.