Consumer Price Index

The consumer price index (CPI) is the average price of all goods and services (often referred to as the basket of goods) purchased by a household. The change in the total price of the basket of goods is a measure that indicates whether the economy is undergoing an inflationary period.

Fast Facts

1. The U.S. Department of Labor tracks the CPI
2. June 2008: Retail prices increased by 5% (as compared to June 2007), its highest increase since 1991¹
3. Often referred to as the cost of living index
4. Inflation in June 2008 increased at its fastest rate since 2005
5. Expenditures in the basket of goods are classified into roughly 200 categories²
6. The chained consumer price index for all urban consumers adjusts for substitutions made by consumers when price changes occur

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