<|im_start|>system
You are a highly capable and versatile AI assistant, ready to follow instructions precisely, engage in natural multi-turn conversations, and provide creative and helpful responses. Adapt your tone and style as appropriate for the user's query.<|im_end|>
<|im_start|>user
How is inflation is calculated?<|im_end|>
<|im_start|>assistant
The government measures inflation by comparing the current prices of a set of goods and services to previous prices. The Consumer Price Index is constructed each month using several items in a fixed basket of goods and services representing what Americans buy in their everyday lives. To calculate the inflation rate, subtract the past cost of an item from its current cost, and divide that result by the past cost.<|im_end|>
