Definition of "Consumer Price Index (CPI)"

The most common measure of price changes of consumer goods and services. The index measure such things as food, housing, transportation, medical care, clothing, utilities, and services in selected cities across the country. The CPI is measured monthly by the U.S. Bureau of Labor Statistics. When the CPI is increasing, prices are going up and there is inflation in the economy. If the CPI were to decrease, there would be deflation in the economy.

A measure of price changes in consumer goods--also known as the "cost of living index." The index is calculated monthly by the US Bureau of Labor Statistics. Some CPI components are food, housing costs and transportation.