Consumer price index (CPI),
Definition of Consumer price index (CPI):
(in the US) an index of the variation in prices for retail goods and other items.
The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them. Changes in the CPI are used to assess price changes associated with the cost of living. The CPI is one of the most frequently used statistics for identifying periods of inflation or deflation.
A measure of changes in the purchasing-power of a currency and the rate of inflation. The consumer price index expresses the current prices of a basket of goods and services in terms of the prices during the same period in a previous year, to show effect of inflation on purchasing power. It is one of the best known lagging indicators. See also producer price index.
The CPI measures the average change in prices over time that consumers pay for a basket of goods and services, commonly known as inflation. Essentially it attempts to quantify the aggregate price level in an economy and thus measure the purchasing power of a country's unit of currency. The weighted average of the prices of goods and services that approximates an individual's consumption patterns is used to calculate CPI. A trimmed mean may be used as part of this.
How to use Consumer price index (CPI) in a sentence?
- I checked the consumer price index to compare prices of goods and services to what their price was on the previous year.
- CPI-W measures the Consumer Price Index for Urban Wage Earners and Clerical Workers while the CPI-U is the Consumer Price Index for Urban Consumers.
- The CPI statistics cover professionals, self-employed, poor, unemployed and retired people in the country but excludes non-metro or rural populations, farm families, armed forces, people serving in prison and those in mental hospitals.
- Index the 60 per cent of median income to the consumer price index, and by 2001, only 2 per cent of people fell below the line.
- CPI is the most widely used measure of inflation and, by proxy, of the effectiveness of the government’s economic policy.
- The investors were concerned about getting their moneys worth on their latest endeavor, and all of them kept a close eye on the consumer price index as a result.
- The Consumer Price Index measures the average change in prices over time that consumers pay for a basket of goods and services.
- Though the President is making every effort to convince us that inflation is down, the cold, hard fact is that the consumer price index indicates otherwise.
Meaning of Consumer price index (CPI) & Consumer price index (CPI) Definition