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What is Consumer Price Index (CPI)?

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Consumer Price Index measures overall changes in consumer prices. It is an indication of price inflation at the consumer level. And is determined by a monthly survey which comes from the U.S. Bureau of Labor Statistics. Among the CPI components are the costs of housing, food, transportation, and electricity. Many employment and pension contracts are tied to changes in consumer prices. It is also referred to as the cost-of-living index.

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