Consumer price inflation (CPI)

By | 2017-09-13T13:19:25+00:00 13th September 2017|

The Consumer Price Index (CPI) examines the weighted average of prices of a defined basket of consumer goods and services. These may include food, energy, transport and housing. It is calculated by taking pricesfor each item in a defined basket of goods at two points in time and averaging them. Changes in the CPI are calculated as the difference between the price baskets. The CPI rate of change is used to assess price changes associated with the cost of living; the CPI is one of the most often- used statistics for identifying periods of inflation or deflation.