What is the purpose of the CPI?

Economics Consumer Price Index Cpi Questions



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What is the purpose of the CPI?

The purpose of the Consumer Price Index (CPI) is to measure changes in the average prices of goods and services purchased by households over time. It is used as a key economic indicator to track inflation and to adjust wages, pensions, and government benefits for changes in the cost of living. The CPI helps policymakers, businesses, and individuals make informed decisions regarding economic planning, budgeting, and investment.