Consumer price index

The consumer price index (CPI) is a government-generated measure of the level of inflation. It is based on the prices of a representative “market basket” of goods and services, which are reviewed at regular intervals. The goods and services sampled are for those used by an urban consumer, and so might not result in a price index that is relevant for other sectors of the economy. The index is developed and maintained by the Bureau of Labor Statistics. The CPI can be used to adjust wages, inventory, pension payments, and other items for the effects of inflation.