Definition

1. Noun:
   • An index of the cost of all goods and services to a typical consumer: The Consumer Price Index (CPI) is a statistical measure that tracks the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It is a primary indicator of inflation and cost-of-living adjustments.

Usage

• The Consumer Price Index is used by governments, economists, and businesses to monitor inflation, adjust salaries and pensions, and inform economic policy.
• It is typically reported as a percentage change from a previous period (e.g., month-over-month or year-over-year).

Examples

• Noun:
  • The government reported that the Consumer Price Index rose by 0.3% last month.
  • Many union contracts include wage increases tied to changes in the Consumer Price Index.
  • Economists analyze the Consumer Price Index to understand purchasing power trends.

Advanced Usage

• "Core CPI": A version of the Consumer Price Index that excludes volatile food and energy prices to provide a clearer view of underlying inflation trends.
  • The Federal Reserve pays close attention to the core CPI when setting monetary policy.

Variants and Related Words

• CPI: The common abbreviation for Consumer Price Index.
  • The CPI data will be released tomorrow.
• Retail Price Index (RPI): A similar but distinct measure of inflation used in some countries, which includes some housing costs not in the CPI.
• Inflation Rate: Often derived from the percentage change in the CPI.
• Cost-of-Living Index: A general term for indices like the CPI that measure the cost of maintaining a certain standard of living.

Synonyms

• Cost-of-living index: A general term for an index measuring changes in the cost of basic goods and services.
• Price index: A broader category of indices that track price changes for specific baskets of goods or services.

Related Phrases

• "CPI basket": Refers to the specific collection of goods and services whose prices are tracked to calculate the CPI.
  • The composition of the CPI basket is updated periodically to reflect changing consumer habits.
• "CPI-U": Stands for Consumer Price Index for All Urban Consumers, the most commonly cited version of the index in the United States.
• "CPI-W": Stands for Consumer Price Index for Urban Wage Earners and Clerical Workers, often used to adjust Social Security benefits.

Noun

1. an index of the cost of all goods and services to a typical consumer