Consumer Price Index Explanation

The speaker explains the relative value of money.  He explains that the consumer price index tracks the price of common consumer goods and keeps a track of inflation.  The CPI allows you to gauge how valuable your money really is.  For example, he provides a scenario where the price of a house is 500k and the price of pizza is $20.  In a second scenario, your house is worth 600k but the price of pizza is $50.  He explains how hte 500k situation is optimal for the consumer since the prices of goods are much lower in that scenario.