What is Fixed basket of goods and services?

A fixed basket of goods and services refers to a constant set of items used to measure price changes over time, typically for calculating inflation through indices like the Consumer Price Index (CPI). This basket includes a variety of products and services that consumers typically purchase, such as food, clothing, housing, and transportation. By tracking the price changes of these fixed items, economists can assess changes in the cost of living and overall economic conditions. The composition of the basket is periodically updated to reflect changes in consumer behavior and preferences.