Economics

Economics Consumer Price Index Consumer Price Index Our economy today uses economic indicators to figure out how the economy is doing and one of these indicators is the Consumer Price Index (CPI). The CPI is an inflation indicator that is calculated by the Bureau of Labor Statistics that they publish every month. The CPI is the most important inflation indicator in the US. The CPI is an estimation of price changes for a typical basket of food. It represents changes of all goods and services purchased for consumption in urban households, such as food, clothing, and even user fees such as water services, etc. However income taxes, stocks, bonds are not included. These goods are compared from one month to the next and the difference is the CPI. The Consumer Price Index is calculated in relation to a base period where it is set from one year to the next. Currently the new base month is May 2000, and this is used inflation, cpi, price, month, index, economy, consumer, indicator, services, one, goods, drop, changes, best, year, sure, stocks, period, over, number, next, indicators, food, causes, cause, calculated, because, base, 2000, water, user, urban, typical, trends, today, therefore