The Consumer Price Index (CPI) is the most widely-cited inflation measure in the US — tracking price changes in a representative basket of goods and services consumed by urban households. Calculated monthly by the Bureau of Labor Statistics. Core CPI excludes volatile food and energy prices for cleaner trend analysis. Components: housing (33%), transportation (16%), food (14%), medical care (8%), recreation (5%), other. Used to index Social Security benefits, tax brackets, and many contracts. Critics argue CPI understates inflation by overweighting urban areas and substituting cheaper alternatives. Alternative measures: PCE (Fed's preferred), Trimmed Mean CPI, Median CPI.
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Consumer Price Index
August 22, 2026 · Aditya Gupta
Finance
Related terms
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The bond market is the global market for debt securities — US Treasuries, corporate bonds, municipal bonds, mortgage-backed…
Bubble
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