The Consumer Price Index (CPI) is a key economic indicator tracking the average change in prices paid by urban consumers for a market basket of goods and...
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It serves as a primary indicator of inflation and deflation.
In the United States, the Bureau of Labor Statistics (BLS) calculates and releases the CPI data monthly. Other countries have similar statistical agencies responsible for their respective CPI figures.
The CPI is crucial because it indicates inflation trends, impacts purchasing power, influences monetary policy decisions (like interest rates), and is used to adjust wages, Social Security benefits, and tax brackets.
The market basket broadly covers categories such as food and beverages, housing, apparel, transportation, medical care, recreation, education, communication, and other goods and services reflecting typical household spending.