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.
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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.
See consumer price index.
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