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Consumer Price Index (CPI)

A consumer price index (CPI) measures changes in the price level of a market basket of consumer goods and services purchased by households. It is one of several price indices calculated by most national statistical agencies. The annual percentage change in a CPI is used as a measure of inflation. A CPI can be used to index (i.e., adjust for the effect of inflation) the real value of wages, salaries, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values.

 

Wikipedia: https://en.wikipedia.org/wiki/Consumer_price_index 



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