Short for Consumer Price Index, this is a measurement of how much the average price level of everyday goods and services changes over time. The CPI tracks prices for things like food, housing, transportation, and healthcare for a typical household. It is the most common way governments and central banks measure inflation.
A government agency surveys the cost of a representative basket of goods, like bread, gas, rent, and doctor visits, month after month. If that basket costs $250 this month and $255 the next month, that shows a 2% increase in the CPI for that period.
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