Consumer Price Index (CPI)

Consumer Price Index (CPI)

See Also:
Economic Indicators
What is Inflation?
Supply and Demand Elasticity
The Feds Beige Book

Consumer Price Index (CPI) Definition

The consumer price index is an economic indicator that measures changes in prices of typical consumer expenses. It is also used to measure inflation and the cost of living in a geographic area. For example, if living expenses rise in a particular region due to inflation, this would result in an increase in that region’s CPI. The CPI is published monthly by the Bureau of Labor Statistics in the Department of Labor.

Consumer Price Index Basket

Calculate the CPI using the prices of items in a “basket” of typical consumer goods and services. The basket includes food, transportation, shelter, clothing, medical care, entertainment, and other items. Prices are determined by samples taken from stores or providers in the relevant geographic area. Then the prices are weighted according to the item’s significance to the consumer. The core CPI is a variant of the CPI that excludes food and energy prices.

Cost of Living Index

You can also call the consumer price index the cost of living index.

Headline Inflation Definition

Also refer to the consumer price index as headline inflation.

US CPI Components

The U.S. CPI covers more than 200 categories of goods and services. The categories fall into the following 8 groupings:
1. Food and Beverages
2. Housing
3. Apparel
4. Transportation
5. Medical care
6. Recreation
7. Education and Communication
8. Other Goods and Services
If you want to learn how to price for profit, then download our Pricing for Profit Inspection Guide.
consumer price index

Strategic CFO Lab Member Extra
Access your Strategic Pricing Model Execution Plan in SCFO Lab. The step-by-step plan to set your prices to maximize profits.
Click here to access your Execution Plan. Not a Lab Member?
Click here to learn more about SCFO Labs

consumer price index
Consumer Price Index Homepage
If you want more information about the CPI, then go to:
If you want more information about the CPI frequently asked questions, then go to:
US CPI Historical Data
If you want historical CPI data, then go to:
Strategic CFO company logo with slogan.

Transform your finance operations with NearSourcing™ Accounting Solutions

and see the benefits firsthand with a
FREE Consultation Session.

Share This Article
Top Articles


Financial Leadership Workshop


August 7-10th, 2023

Innovative CFO logo, "Creating Success Through Financial Leadership" slogan.

Empower your business with NearSourcing™ Accounting Solutions

and take advantage of expert financial strategies at reduced costs

Related Blogs
Scroll to Top
WIKICFO® - Browse hundreds of articles
Skip to content