Consumer Price Index

The Consumer Price Index is a key economic indicator, measuring inflation. Calculated by taking the change in the weighted average prices of a basket of consumer items.

The Consumer Price Index (CPI) is an economic indicator designed to measure the cost of living in an economy. The CPI measures the change in the weighted average prices of a basket of consumer items, the Market Basket. The items have been chosen to reflect price changes in the cost of living. The Basket is a collection of consumer goods and services, covering consumer staples such as food and medicine and transport. The CPI is measured year on year and published on a regular basis, often monthly. In the U.S. the Bureau of Labor Statistics calculates the CPI, collecting data on 94,000 price quotes, covering 93% of the U.S. population.