What is the Consumer Price Index (CPI)?

Economics Consumer Price Index Cpi Questions



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What is the Consumer Price Index (CPI)?

The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It is used to track inflation and assess changes in the cost of living for consumers. The CPI is calculated by comparing the current prices of a fixed basket of goods and services to their prices in a base period, and then adjusting for changes in quality and quantity.