CPI

CPI means Consumer Price Index. In simple terms, CPI measures how the prices of common goods and services change over time. It is often used to track inflation. When CPI rises, it usually means the cost of living is going up because people have to pay more for things like food, housing, transportation, and medical care. For example, if the CPI rises by 3% over a year, it means the average price of the basket of goods and services measured by CPI increased by about 3%. CPI does not measure every price in the economy. It follows a selected basket of common consumer expenses, so it is useful, but it may not perfectly match every person’s actual spending.