Business, Legal & Accounting Glossary

Definition: CPI


Quick Summary of CPI

Consumer Price Index. An inflationary indicator that measures the change in the cost of a fixed basket of products and services, including housing, electricity, food, and transportation. The CPI is published monthly. also called cost-of-living index.

What is the dictionary definition of CPI?

Dictionary Definition

A Consumer Price Index measures changes in the price level of a weighted average market basket of consumer goods and services purchased by households.

Full Definition of CPI

CPI is the common abbreviation for the Consumer Price Index, which measures the change in prices urban Americans pay for a fixed basket of goods and services. The CPI encompasses over 80,000 consumer items in a wide range of categories, like apparel, medical care, and transportation. Besides the overall “headline” CPI, a “core” CPI is computed that excludes the somewhat volatile food and energy sectors. The CPI is among the key indicators that the Federal Reserve Board monitors for signs of inflation, so the CPI can offer clues about the direction of interest rates. A larger-than-expected increase in the CPI tends to have a negative effect on stock prices, because it raises fears that the Fed will tighten monetary policy and slow the economy. The CPI itself has an impact on price levels, because it is used to adjust payments to individuals, such as cost-of-living wage adjustments. The CPI is compiled by the Bureau of Labor Statistics within the Department of Labor, which releases the report on or about the 15th of each month at 8:30 AM.

Examples of CPI in a sentence

The President of the United States told our CEO that he was concerned that CPI had gone up, resulting in more expensive food and housing while workers wages had not risen.

You should always try and follow the CPI so that you know if things are going well in your companies favor.

My company recently entered into a leasehold agreement that provided lease payments would be adjusted annually to reflect the greater of 3% or the change in CPI from year to year.

Synonyms For CPI

Consumer Price Index

Related Phrases

core CPI

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
CPI. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
September 30, 2023 https://payrollheaven.com/define/cpi/.
Chicago Manual of Style (CMS):
CPI. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/cpi/ (accessed: September 30, 2023).
American Psychological Association (APA):
CPI. PayrollHeaven.com. Retrieved September 30, 2023
, from PayrollHeaven.com website: https://payrollheaven.com/define/cpi/

Definition Sources

Definitions for CPI are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th October, 2021 | 0 Views.