What is CPI? | Consumer Price Index
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by consumers for a basket of goods and services. It is used to track the cost of living in a specific area and is used by governments, businesses, and individuals to make informed decisions about inflation, wages, and other economic factors.
The CPI is calculated by the Bureau of Labor Statistics (BLS) in the United States, and it is based on the prices of a representative sample of goods and services consumed by households. These goods and services are grouped into categories, such as housing, transportation, food, and healthcare, and the BLS surveys thousands of retailers and service providers to collect data on their prices.
The CPI is published monthly and is used as a measure of inflation, which is the general increase in the prices of goods and services over time. When the CPI increases, it means that the cost of living has also increased, and consumers may need to pay more for the same goods and services. The CPI is used to adjust a variety of economic indicators, such as wages, pensions, and government benefits, to ensure that they keep pace with changes in the cost of living.
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