In a rapidly changing economy with frequent technological advancements, how should a central bank adjust its CPI calculation to better reflect true inflation?

• A. The central bank should use historical prices to ensure stability in inflation measurement.
• B. The central bank should focus solely on traditional retail prices to avoid outlet bias.
• C. The central bank should frequently update the CPI basket to include new products and adjust for quality improvements.
• D. The central bank should exclude new products from the CPI basket to maintain consistency.

Answer: (C)