What does CPI mean?

CPI stands for Consumer Price Index, which is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It is a key indicator of inflation and is used to understand changes in the cost of living. The CPI is commonly used by economists, policymakers, and investors to gauge the purchasing power of a currency and to make informed decisions about economic policy, investment strategies, and financial planning. It is also used to adjust income and benefits to account for changes in the cost of living. Overall, the CPI is an important tool in understanding and monitoring the economic health of a nation.