Editing Consumer price index (section)

{{Short description|Statistic to indicate the change in typical household expenditure}}
{{Redirect|CPI}}
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{{Technical|date=March 2018}}
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{{Use American English|date = March 2019}}
[[File:M2, CPI, PCE.webp|thumb|450px|right|(Percent change from a year earlier)
{{legend-line|#4572a7 solid 4px|[[Money supply|M2 money supply]]}}
{{legend-line|#89A54E solid 4px|CPI}}
{{legend-line|#80699B solid 4px|[[Core inflation|Core]] CPI}} 
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[[File:CPI 1914-2022.webp|thumb|alt=CPI 1914-2022|450px|CPI 1914–2022
{{legend|#0076BA |[[Inflation]]}}
{{legend|#EE220C |[[Deflation]]}}
{{legend-line|#1DB100 solid 3px|[[Money supply|M2 money supply]] increases Year/Year}}
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A '''consumer price index''' ('''CPI''') is a statistical estimate of the level of prices of goods and services bought for consumption purposes by households. It is calculated as the weighted average price of a [[market basket]] of [[Goods|consumer goods]] and [[Service (economics)|services]]. Changes in CPI track changes in prices over time.<ref>{{cite web|url=https://stats.oecd.org/glossary/detail.asp?ID=427|title=CONSUMER PRICE INDEX|publisher=OECD|access-date=September 13, 2019}}</ref> The items in the basket are updated periodically to reflect changes in consumer spending habits. The prices of the goods and services in the basket are collected (often monthly) from a sample of retail and service establishments. The prices are then adjusted for changes in quality or features.{{cn|date=July 2023}} Changes in the CPI can be used to track inflation over time and to compare inflation rates between different countries. While the CPI is not a perfect measure of inflation or the [[cost of living]], it is a useful tool for tracking these economic indicators. <ref>{{Cite news |last=Frick |first=Walter |date=2022-12-23 |title=What Causes Inflation? |work=Harvard Business Review |url=https://hbr.org/2022/12/what-causes-inflation |access-date=2023-07-21 |issn=0017-8012}}</ref> It is one of several [[Price index|price indices]] calculated by many national statistical agencies.