The Consumer Price Index (or CPI) is a monthly
statistical economic indicator of the average change in the prices
of a representative set of goods and services purchased by urban
households. It is measured according to the spending patterns of
All-Urban Customers and All-Urban Wage Earners and Clerical
Workers. The urban group comprises the major percentage of the US
economy. This group includes professionals, the employed, the
un-employed and the poor. Expenditure is measured over categories
and major groups of goods and services, like food and beverages,
medical aid and others. There are about 200 categories and grouped
into eight sub-categories used for measurement today.
Moreover, Consumer Price Index (or CPI) is used as an
economic indicator. In addition, countries base their decisions on
the current CPI when it comes to adjusting currency values and
deflating economic conditions. Also, the change in percentage of
the current Customer Price Index (or CPI) is used to measure
inflation.