CPIs measure changes over time in the general level of prices of goods and services that households acquire (use or pay for) for the purpose of consumption. In many countries, they were originally introduced to provide a measure of the changes in the living costs faced by workers, so that wage increases could be related to changing levels of prices.
Consumer price indexes (CPI) measure changes over time in the general level of prices of goods and services
that households acquire (use or pay for) for the purpose of consumption. In many countries, they were
originally introduced to provide a measure of the changes in the living costs faced by workers, so that wage
increases could be related to changing levels of prices. However, over the years, CPIs have widened their
scope and now are widely used as a macroeconomic indicator of inflation, as a tool by governments and
CPIs measure changes over time in the general level of prices of goods and services that households acquire (use or pay for) for the purpose of consumption. In many countries, they were originally introduced to provide a measure of the changes in the living costs faced by workers, so that wage increases could be related to changing levels of prices.
