Sale stickers on a store shelf. A seven percent increase in the consumer price index (CPI) over the 12 months to December was the highest since 1982. (STEFANI REYNOLDS/AFP via Getty Images) WASHINGTON - The Consumer Price Index (CPI) measures the change in prices paid by consumers for goods and services and is often used as a way to gauge inflation.Inflation for urban consumers is measured by two indexes, the Consumer Price Index for All Urban Consumers (CPI) and the Chained Consumer Price Index for All Urban Consumers (C-CPI).The Bureau of Labor Statistics (BLS) releases a report each month, evaluating the spending trends by urban consumers using the CPI.
Data for the report factors in urban consumer expenses, which include food, gas, and household furnishings. Here’s what you need to know about the CPI and how it’s used by the Bureau of Labor Statistics.