Consumer Price Index

What is the Consumer Price Index?

The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a basket of goods and services.

Importance of the Consumer Price Index

The CPI is an important economic indicator that is used to:

• Measure inflation and deflation
• Adjust wages and salaries
• Set interest rates
li>Make economic forecasts

Conclusion

The CPI is a vital tool for understanding the economic health of a country. It is used by businesses, governments, and individuals to make informed decisions about the future.