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Simple English definitions for legal terms
CPI
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A quick definition of CPI:
Term: CPI
Definition: CPI stands for Consumer Price Index. It is a measure of how much the prices of goods and services that people buy change over time. It helps us understand how much more or less expensive things are compared to a certain time period. For example, if the CPI goes up, it means that things are getting more expensive. If the CPI goes down, it means that things are getting cheaper.
A more thorough explanation:
Term: CPI
Definition: CPI stands for Consumer Price Index. It is a measure of the average change over time in the prices paid by urban consumers for a basket of goods and services.
Examples:
- If the CPI is 100 in the base year and 110 in the current year, it means that the cost of living has increased by 10%.
- The CPI includes items such as food, housing, clothing, transportation, and medical care.
The first example illustrates how the CPI is used to measure inflation. If the CPI increases, it means that prices have gone up and the cost of living has increased. The second example shows the types of items that are included in the CPI basket, which gives an idea of what the average consumer spends their money on.