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Economics vocabulary · Inflation and Prices

Consumer price index

Meaning in economics, with examples

nounCore term

In economics, consumer price index means: A measure of the average change over time in the prices that households pay for a fixed basket of goods and services, used to calculate inflation.

In Turkish: tüketici fiyat endeksi, TÜFE

How it is used

Usually shortened to CPI and published monthly by national statistics offices, such as TurkStat in Türkiye, the ONS in the UK and the Bureau of Labor Statistics in the US. Headlines say CPI rose 0.3% month on month or 2.9% year on year.

Example sentences

  1. The consumer price index rose 2.4% from a year earlier, in line with forecasts.

  2. Rent and food have a large weight in the consumer price index, so changes in them move the headline figure a lot.

Common collocations

  • the consumer price index rose
  • CPI data
  • CPI inflation
  • the CPI basket
  • inflationA general and continuing rise in the prices of goods and services in an economy, which means each unit of money buys less over time.
  • core inflationA measure of inflation that leaves out the most volatile prices, usually food and energy, to show the underlying trend in prices.
  • cost of livingThe amount of money people need to pay for basic needs such as housing, food, transport and energy in a particular place and time.
  • year-on-yearCompared with the same period one year earlier, for example sales in March this year compared with sales in March last year.

More terms: Inflation and Prices

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This page explains English vocabulary for learners. It is not financial advice.