Consumer Price Index

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Definition:

The Consumer Price Index (CPI) measures the change in prices of goods and services purchased by households in the U.S. The CPI is actually two measures (one for urban wage earners/clerical workers and the other for all urban consumers), but it is usually reported as one number.

According to the U.S. Department of Labor's Bureau of Labor Statistics, the CPIs are

based on prices of food, clothing, shelter, and fuels, transportation fares, charges for doctors' and dentists' services, drugs, and other goods and services that people buy for day-to-day living.


Examples: The CPI for the second quarter of 2008 showed an increase of 1.0% over that of the previous quarter.
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