Economic Definition of CPI. Defined.
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Term CPI Definition: The common abbreviation for the Consumer Price Index, which is an index of prices of goods and services typically purchased by urban consumers. The CPI is compiled and published monthly by the Bureau of Labor Statistics (BLS), using price data obtained from an elaborate survey of 25,000 retail outlets and quantity data generated by the Consumer Expenditures Survey. The CPI is unquestionably one of the most widely recognized macroeconomic price indexes, running second only to the Dow Jones Industrial Average in the price index popularity contest. It is used not only as an indicator of the price level and inflation, but also to convert nominal economic indicators to real terms and to adjust wage and income payments (such as Social Security) for inflation.
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