Consumer Price Index

The Consumer Price Index (CPI) for All Urban Consumers is a measure of the average monthly change in the price for goods and services paid by urban consumers between any two time periods. The CPI can be used to recognize periods of inflation and deflation. Significant increases in the CPI within a short time frame might indicate a period of inflation, and significant decreases in CPI within a short time frame might indicate a period of deflation. However, because the CPI includes volatile food and oil prices, it might not be a reliable measure of inflationary and deflationary periods. For a more accurate detection, the core CPI (Consumer Price Index for All Urban Consumers: All Items Less Food & Energy) is often used.

 

 

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