Google trend - CPI

CPI - 10 things to know with detail

• CPI stands for Consumer Price Index, which is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
• The CPI is calculated by the Bureau of Labor Statistics (BLS) on a monthly basis and is widely used as an indicator of inflation in the economy.
• The CPI is based on a representative sample of goods and services that are purchased by urban consumers, including food, housing, transportation, and medical care.
• The CPI is used by policymakers, economists, and businesses to monitor inflation, adjust wages and benefits, and make decisions about monetary policy.
• The CPI is often used to adjust Social Security benefits, tax brackets, and other government programs for inflation.
• There are different versions of the CPI, including the CPI-U (which includes urban consumers), the CPI-W (which includes urban wage earners and clerical workers), and the CPI-RS (which includes households headed by persons age 62 and older).
• The CPI is calculated using a weighted average of prices, with more weight given to items that are purchased more frequently by consumers.
• The CPI does not include certain items such as investment items like stocks and bonds, or large purchases like cars and homes.
• The CPI is often criticized for not accurately reflecting the inflation experienced by individual consumers, as it is based on a broad average of prices.
• Despite its limitations, the CPI remains an important tool for measuring inflation and making economic decisions.