Consumer Price Index - CPI

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. The CPI is calculated by taking price changes for each item in the predetermined basket of goods and averaging them; the goods are weighted according to their importance. Changes in CPI are used to assess price changes associated with the cost of living.

Sometimes referred to as "headline inflation."

The U.S. Bureau of Labor Statistics measures two kinds of CPI statistics: CPI for urban wage earners and clerical workers (CPI-W), and the chained CPI for all urban consumers (C-CPI-U). Of the two types of CPI, the C-CPI-U is a better representation of the general public, because it accounts for about 87% of the population.

CPI is one of the most frequently used statistics for identifying periods of inflation or deflation. This is because large rises in CPI during a short period of time typically denote periods of inflation and large drops in CPI during a short period of time usually mark periods of deflation.

Investment dictionary. . 2012.

Look at other dictionaries:

  • Consumer Price Index — /kənˌsju:mə praɪs ˌɪndeks/ noun an American index showing how prices of consumer goods have risen over a period of time, used as a way of measuring inflation and the cost of living (NOTE: The British equivalent is the Retail Prices Index or RPI.) …   Marketing dictionary in english

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  • consumer price index — con.sumer price .index n a list of the prices of products that shows how much prices have increased during a particular period of time …   Dictionary of contemporary English

  • consumer price index — noun (C) AmE a list of the prices of products that is prepared to show how much prices have increased during a particular period of time: retail price index BrE …   Longman dictionary of contemporary English

  • consumer price index — noun Date: 1948 an index measuring the change in the cost of typical wage earner purchases of goods and services expressed as a percentage of the cost of these same goods and services in some base period called also cost of living index …   New Collegiate Dictionary

  • consumer price index — noun A statistical estimate of the level of prices of goods and services bought for consumption purposes by households …   Wiktionary

  • Consumer price index (Belgium) — The Belgian Consumer Price Index (commonly referred to as the Index) is a list of prices of goods and services, kept by the Belgian Federal Government Service Economy. The Index is updated on a monthly basis, and reflects the evolution in the… …   Wikipedia

  • consumer price index linkage — attachment to the consumer price index (measure of prices of goods bought by the consumer) …   English contemporary dictionary

  • consumer price index, the — con,sumer price ,index, the noun AMERICAN a list of the prices of some basic goods and services published by the U.S. government to show how much prices in general have risen or fallen …   Usage of the words and phrases in modern English

  • Harmonized Consumer Price Index (HCPI) — Гармонизированный (сглаженный по сезонности) индекс потребительских цен. Словарь терминов и сокращений рынка forex, Forex EuroClub …   Финансовый словарь

  • the consumer price index — UK / US noun American the retail price index …   English dictionary

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