the Consumer Price Index (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 reflects how much prices are rising or falling, helping to gauge inflation. Governments, businesses, and individuals use the CPI to understand cost changes, adjust wages, pensions, or contracts, and make economic decisions. Essentially, it’s a tool that shows whether the cost of everyday essentials is going up or down, providing insight into the economy’s price stability.