What is Consumer Price Index?
A definition of Consumer Price Index
“The Consumer Price Index (CPI) measures changes in the price level of a market basket of consumer goods and services purchased by households. It is a key indicator of inflation and economic health.”

Business Glossary > What is Consumer Price Index?
Examples of Consumer Price Index in a Sentence:
The Consumer Price Index rose by 3% last month.
Analysts monitor the Consumer Price Index to gauge inflation.
Changes in the Consumer Price Index affect cost-of-living adjustments.
Why is Consumer Price Index Important in Business?
The Consumer Price Index is crucial as it affects inflation rates, which in turn influence interest rates, wages, and government policies. It impacts cost-of-living adjustments and helps businesses and consumers make informed financial decisions.
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Associated Terms
Here are some associated business terms and synonyms for “Consumer Price Index”:
- CPI
- Inflation Rate Indicator
- Cost-of-Living Index
Example of Consumer Price Index Impact
The rising Consumer Price Index prompted many companies to adjust their pricing strategies. For instance, Procter & Gamble increased their product prices to offset higher supply chain costs influenced by rising CPI figures.
Final Notes on Consumer Price Index
Understanding the Consumer Price Index is vital for anticipating inflation trends. Businesses and policymakers should closely watch CPI data to adjust strategies and policies effectively based on economic conditions.
This has been a definition of Consumer Price Index meaning.
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