CPI

The Consumer Price Index (CPI) measures the average change over time in the prices paid by consumers for a basket of goods and services, such as food, housing, and transportation. It is used to gauge inflation, indicating whether prices are rising or falling. When the CPI increases, it suggests that the cost of living is going up, reducing purchasing power. Conversely, a decreasing CPI indicates falling prices. Policymakers, businesses, and individuals use CPI data to make informed decisions about wages, investments, and economic policy. It provides a snapshot of inflation's impact on everyday expenses.