United States Consumer Price Index (CPI) m/m

Consumer Price Index (CPI) m/m shows changes in average prices for a consumer basket of goods and services in the given month compared to the previous one. The index shows how prices change from the consumer perspective. In other words, it allows estimating changes in the cost of living.

Goods and services included in the CPI calculation basket are divided into eight main groups: food and beverages, housing, clothing, transportation, medical care, recreation, education and communications, other goods and services. In turn, these eight groups are divided into more than 200 categories, which include about 80,000 titles. The index calculation does not include income taxes and investment items (stocks, bonds, insurance policies). Unlike the producer price index, prices for imported goods and excise prices are included in calculation.

Prices for goods and services, based on which the index is calculated, are collected from a monthly survey of approximately 23,000 trade and service companies. The sample is revised from time to time. Also, thousands of families across the country are interviewed. Weights of calculation elements are regularly reviewed. The indicator is calculated in comparison with benchmark prices as of 1982.

The CPI calculation takes into account spendings of urban residents, such as specialists, self-employed citizens, unemployed, officials, pensioners. Farmers, rural population, military personnel and individuals in prisons and psychiatric hospitals are not included in calculation.

The Consumer Price Index is often used for evaluating inflation. CPI growth indicates an increase in inflation.

The index is used for the adjustment of wages and social payments. Also, CPI is used for adjusting the income tax structure and in the calculation of real GDP.

CPI growth is seen as positive for dollar quotes.