CPI-U (Consumer Price Index for All Urban Consumers)

The CPI-U (Consumer Price Index for All Urban Consumers) measures the average change over time in prices paid by urban households for a broad basket of goods and services, such as food, housing, transportation, and healthcare. It reflects the cost of living in cities and is used to gauge inflation. By tracking how these prices fluctuate monthly or annually, the CPI-U helps businesses, policymakers, and individuals understand changes in purchasing power and the overall economic environment. It’s a key indicator for adjusting wages, pensions, and monetary policy to maintain economic stability.