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Consumer Price Index (CPI) - What is CPI? Find out here

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Consumer Price Index (CPI)
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bls.gov/cpi
The Consumer Price Index (CPI) measures the monthly change in prices paid by U.S. consumers. The U.S. Bureau of Labor Statistics (BLS) calculates the CPI as a weighted average of prices for a basket of goods and services representative of aggregate U.S. consumer spending. investopedia.com
- What goods and services does the CPI cover?: ‎BLS has classified all expenditure items into more than 200 categories, arranged into eight major groups (food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services).
- Which index is the "official CPI" reported in the media?: The broadest and most comprehensive CPI is called the All Items Consumer Price Index for All Urban Consumers (CPI-U) for the U.S. City Average, 1982-84=100. The CPI-U represents the 93% of the U.S. population not living in remote rural areas. CPI-U is the basis of the widely reported CPI numbers that matter to financial markets.
- How is the CPI used?: ㅤ
- • As an economic indicator: ‎As the most widely used measure of inflation, the CPI is an indicator of the effectiveness of government fiscal and monetary policy.
- • As a deflator of other economic series: The CPI and its components are used to adjust other economic series for price change and to translate these series into inflation-free dollars.
- • As a means for indexation (i.e. adjusting income payments): Over 2 million workers are covered by collective bargaining agreements which tie wages to the CPI.
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Source: investopedia.com, wikipedia.org, bls.gov