Definition

A measure that tracks changes in the price level of a basket of consumer goods and services, commonly used to gauge inflation.

What to consider

  • Watch CPI trends to see how inflation is affecting everyday prices.
  • Consider how rising costs impact your overall purchasing power.
  • Use this data to adjust your budget accordingly.

Real world scenarios

  • When reading the newspaper, Sarah noticed the Consumer Price Index (CPI) had risen, indicating that the overall cost of living was increasing.

Related terms

Investments & Retirement