Consumer Price Index (CPI)

1. compares the current cost of purchasing a fixed set of goods and services with the cost of the same set at a specific base year. The resulting measures can be compared over time.
2. an inflationary indicator that measures the change in the cost of a fixed basket of products and services, including housing, electricity, food, and transportation. The CPI is published monthly; also called cost-of-living index (see Retail Price Index and Producer Price Index.)