Bureau of Labor Statistics Utilizes Consumer Price Index to Track U.S. Inflation Trends
The Consumer Price Index (CPI) is a key economic indicator used by the U.S. Bureau of Labor Statistics (BLS) to measure the average change over time in prices paid by urban consumers for a market basket of consumer goods and services. This basket is categorized into eight broad groups: food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services. The CPI also includes certain taxes directly linked to purchases, such as sales and excise taxes, but excludes investments like stocks and bonds. The BLS calculates CPI by comparing the cost of this representative basket in the current period to a base period. While CPI measures changes in consumer prices, it is often used interchangeably with inflation, which refers to the rate at which the general price level increases. The BLS also reports a 'core CPI,' which excludes volatile food and energy prices to provide insight into underlying price trends.
