What is the consumer price index (CPI)?

1 Answer
Kuba Dolecki · Media Owl
Dec 16, 2014

The consumer price index (CPI) is data on change in the price consumers (individuals like you or me) pay for a selection of goods and services.

CPI is based on a statistical estimate, meaning some agency (for example, the government) will look at a certain sample of goods and services and produce a number that should be representative of the price of most goods and services in the economy.

The CPI is a good measure of inflation.

Related questions
See all questions in Price indices
Impact of this question
2699 views around the world
You can reuse this answer
Creative Commons License