#cpi The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them. Changes in the CPI are used to assess price changes associated with the cost of living; the CPI is one of the most frequently used statistics for identifying periods of inflation or deflation1.

In the United States, the CPI has recently shown an increase. For instance, the CPI-U, which covers 93% of the U.S. population, increased by 3.2% over the 12 months ending February 2024. In February 2024 alone, the index rose by 0.4% compared to a 0.3% increase in January 20242. This kind of data is closely followed by policymakers, financial markets, businesses, and consumers as it is a primary gauge for inflation1.