Apr 4, 2025

Consumer Price Index

• CPI is the measure of the average change in price of common goods and services consumers buy over time.

How do I remember it?

• Think of CPI as a "Pricing tracker." It tells you if the cost of living is increasing or decreasing based on what consumers are buying.

Real world example

• For example, let’s say in 2020, the average cost of your monthly groceries, bills, and gas was $1,000. In 2025, the same stuff costs $1,300. That’s a 30% increase, so CPI went up 30%, meaning inflation rose.