Consumer Price Index - An indicator that measures the change in the average price of goods and services over a period of time. The consumer price index or CPI is very important for understanding the value of a currency. If the consumer price index rises, it means that the national currency is losing its purchasing power. And if the consumer price index declines, it means that the purchasing power of the national currency is increasing.

The Consumer Price Index (CPI) is a vital economic indicator that measures the average change in prices paid by consumers for a basket of goods and services over time. It is used to gauge inflation, reflecting the cost of living and purchasing power. The CPI covers categories such as food, housing, transportation, and medical care. Governments, businesses, and policymakers rely on the CPI to make informed decisions about monetary policy, wage adjustments, and economic planning. By tracking price changes, the CPI helps assess economic health and guide fiscal policies. Understanding the CPI is crucial for anticipating inflation trends, managing budgets, and making strategic financial decisions both at the individual and macroeconomic levels.