The consumer price index is the most commonly quoted rate of inflation. CPI is calculated by taking the price of basket of goods and services and is compared to the price it was the year prior to come up with the percent change, or the rate of inflation.

Related Terms

  • Unemployment Rate

  • Supply & Demand

  • Stagflation

  • Recession

  • Money Supply

  • Monetary Policy

  • Interest Rates

  • Inflation

  • Gross Domestic Product (GDP)

  • Fiscal Policy

  • Federal Reserve

  • Federal Funds Rate

  • Business Cycle