50.8 F
New York

Consumer Price Index (CPI)

The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Indexes are available for the U.S. and various geographic areas. Average price data for select utility, automotive fuel, and food items are also available.

The U.S. Bureau of Labor Statistics (BLS) reports the CPI on a monthly basis and has calculated it as far back as 1913. It is based upon the index average for the period from 1982 through 1984 (inclusive) which was set to 100. So a CPI reading of 100 means that inflation is back to the level that it was in 1984 while readings of 175 and 225 would indicate a rise in the inflation level of 75% and 125% respectively. The quoted inflation rate is actually the change in the index from the prior period, whether it is monthly, quarterly or yearly.

The Consumer Price Index (CPI) produces both unadjusted and seasonally adjusted data.
Seasonally adjusted data are computed using seasonal factors derived by the X-13ARIMA-SEATS seasonal adjustment method. These factors are updated each February, and the new factors are used to revise the previous 5 years of seasonally adjusted data. The factors are available at the U.S. Bureau of Labor Statistics.

For more information on data revision scheduling, please see the BLS Factsheet on Seasonal Adjustment at and the Timeline of Seasonal Adjustment Methodological Changes.

View all terms

Bitcoin

Bitcoin is a cryptocurrency invented in 2008 by an unknown person or group of people operating under the name Satoshi Nakamoto. Bitcoin uses peer-to-peer...

Central Bank

A central bank is an institution that manages the currency and monetary policy of a state or formal monetary union, and oversees their commercial...

Fractional Reserve Banking

Fractional reserve banking is the most common form of banking practiced by commercial banks worldwide. It involves banks accepting deposits from customers and making...

Reserve Bank of New Zealand

The Reserve Bank of New Zealand is New Zealand's central bank. It was established in 1934, and although not a government department, has been...

Pip

What Is a Pip? Pip is an acronym for "percentage in point". A pip is the smallest price move that an exchange rate can make...