Consumer Price Index - CPI

An index that measures prices based on the value of certain good and services in an attempt to meter and measure inflation rates.

The Consumer Price Index (CPI) is a measure of inflation experienced by consumers. It measures changes in the prices of a standard basket of goods that the average consumer uses. Trying to find the 200 or so goods an average person uses is impossible to precisely define—like...who really is the "average consumer"?

Well, the Bureau of Labor Statistics tries their best to make an approximation of the most commonly used goods and services from eight different categories. It's important to note that the CPI only looks at money consumers spend on goods and services, so it doesn't include finanacial assets or income taxes.