CPI stands for Consumer Price Index and is a measure of the average change in prices over time for goods and services purchased by consumers. It is used to measure inflation and is calculated by the Bureau of Labor Statistics.
Consumer Price Index (CPI) is an economic indicator used to measure the average change in prices of goods and services purchased by consumers. It is used to measure inflation and deflation in an economy. CPI is calculated by taking the weighted average of prices of a basket of goods and services, such as food, housing, transportation, medical care, and recreation. The basket of goods and services is updated periodically to reflect changes in consumer spending patterns.
CPI is an important economic indicator because it provides a measure of the cost of living in an economy. It is used to adjust wages, pensions, and other benefits for inflation. It is also used to adjust the value of the currency, as well as to adjust taxes and other government policies.
CPI is calculated by the Bureau of Labor Statistics (BLS) in the United States. The BLS surveys prices of a fixed basket of goods and services in urban areas across the country. The basket of goods and services is updated periodically to reflect changes in consumer spending patterns. The BLS then calculates the average change in prices of the goods and services in the basket. This average change is the CPI.
CPI is used to measure inflation and deflation in an economy. When the CPI increases, it indicates that prices are rising and inflation is occurring. When the CPI decreases, it indicates that prices are falling and deflation is occurring.
CPI is an important economic indicator because it provides a measure of the cost of living in an economy. It is used to adjust wages, pensions, and other benefits for inflation. It is also used to adjust the value of the currency, as well as to adjust taxes and other government policies.