CPI (Consumer Price Index)

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, clothing, and housing. It reflects inflation or deflation, indicating how much prices have increased or decreased compared to a previous period. The CPI is often used by governments and economists to gauge the cost of living, adjust salaries, or determine economic policy. A rising CPI signals higher living costs, while a falling CPI suggests prices are decreasing, impacting purchasing power.