A measure that tracks the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
The Consumer Price Index (CPI) is a widely used economic indicator that measures inflation by tracking the average change over time in the prices paid by urban consumers for a basket of goods and services. This basket typically includes items such as food, housing, apparel, transportation, and medical care. The CPI is a key metric used by central banks and policymakers to assess the health of the economy and inform decisions regarding monetary policy, such as setting interest rates.