What is the consumer price index (CPI)?

The consumer price index (CPI) is data on change in the price consumers (individuals like you or me) pay for a selection of goods and services.

CPI is based on a statistical estimate, meaning some agency (for example, the government) will look at a certain sample of goods and services and produce a number that should be representative of the price of most goods and services in the economy.

The CPI is a good measure of inflation.