Consumer Price Index (CPI)

The Consumer Price Index (CPI) measures the average change in prices paid by urban consumers for a market basket of goods and services. It is the most widely used measure of consumer-level inflation in the United States and is produced monthly by the BLS.

The most common series is CPI-U All Items (CUUR0000SA0), which covers all urban consumers — about 93% of the U.S. population. The index is benchmarked to 1982–84 = 100. A value of 310 means prices are 210% higher than in 1982–84.

CPI vs. core CPI: "Core" CPI excludes food and energy prices, which are volatile. The Federal Reserve pays close attention to core CPI when setting interest rate policy. CPI vs. PPI: CPI measures prices consumers pay; the Producer Price Index (PPI) measures prices producers receive — PPI changes often precede CPI changes by a few months.