The Consumer Price Index (CPI) is a measure of the average change in prices over time for goods and services consumed by households.
CPI is calculated by comparing the prices of a basket of goods and services in a given period to the prices of the same basket in a base period.
CPI is used to track inflation and the cost of living, and is often used to adjust wages, benefits, and taxes for inflation.
CPI is published monthly by the Bureau of Labor Statistics (BLS) and is broken down into categories such as food, housing, and transportation.
CPI can help you make informed financial decisions by giving you an idea of how much prices are changing over time.
CPI can also help you compare the cost of living in different cities or regions, which can be useful if you're considering a move.
While CPI is a useful tool, it's important to remember that it's just one measure of inflation and the cost of living. Other factors, such as changes in technology or shifts in consumer preferences, can also affect prices.