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The Consumer Price Index (CPI) measures the price of specific consumer goods, services and the market basket price of selected products. This measure is taken on a periodic bases and used as a benchmark to shown the changing value over time.

The CPI draws metrics from a defined sample groups which include surveys, actual market prices and expenditure patterns. The CPI provides a fixed number which in turn can be used to calculate inflation

Next: Deflation Explained

Previous: Historical Inflation Rates