Question

What does Consumer price index mean?

Explain the term Consumer Price Index.

Answer 1

Consumer Price Index, also known as the cost of living index, is a measure that represents the average change over time in the prices of a basket of specific items consumed by the consumers.

Answer 2

Consumer Price Index (CPI) is an indicator that measures the average price level of a basket of consumer goods and services, such as food, transportation, and healthcare, purchased by households. It reflects the cost of living and is commonly used to measure inflation. When CPI increases, it means that the prices of these goods and services have risen, indicating inflation.