Personal Finance

What Is the Consumer Price Index (CPI)?

The Consumer Price Index (CPI) measures the average change over time in the prices consumers pay for a representative basket of goods and services, such as food, housing, transportation, and medical care. The percentage change in CPI is the most commonly cited measure of inflation.

Who Publishes It

In the US, the Bureau of Labor Statistics publishes CPI monthly; most countries have a similar official index.

How It Is Used

CPI is used to adjust Social Security benefits, tax brackets, and some wages and contracts, and to calculate inflation-adjusted returns.

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🔗 Related Terms

Inflation Cost-of-Living Adjustment (COLA) Deflation Real Rate of Return

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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.