CPI

A measure of inflation. See: Consumer Price Index.

Consumer Price Index

A measure of inflation in the United States that considers what people spend on staple goods and services. It is calculated by taking the average of changes in price to a basket of goods and services compiled by the U.S. Department of Labor. The goods and services in the basket are weighted according to their perceived importance. The CPI is considered a primary tool in determining how people are experiencing inflation.

CPI

See consumer price index.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Consumer price index (CPI).

The consumer price index (CPI) is compiled monthly by the US Bureau of Labor Statistics and is a gauge of inflation that measures changes in the prices of basic goods and services.

Some of the things it tracks are housing, food, clothing, transportation, medical care, and education.

The CPI is used as a benchmark for making adjustments in Social Security payments, wages, pensions, and tax brackets to keep them in tune with the buying power of the dollar. It's often incorrectly referred to as the cost-of-living index.

CPI

See consumer price index.

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