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Business, 20.11.2020 16:30 biglue19

The CPI's basket of goods includes red wine, over half of which is made from grapes grown in California. Wildfires this summer destroyed acres of grape fields in California, causing a spike in the price of grapes, and there a 30% increase in the price of a bottle of red wine. As a result, the CPI calculation showed an increase of 2% in the Fall of this year versus last year. Please explain if this 2% increase is reflective of the overall price level, and if not, why?

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