Consumer Price Index (CPI)

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them. CPI stands for Consumer Price Index, a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. A measure of inflation that tracks the average change over time in the prices of goods and services purchased by households. Consumer Price Index (CPI), a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. A measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.