#CPI&JoblessClaimsWatch The Consumer Price Index (CPI) is a key economic indicator that measures the average change in prices paid by consumers for goods and services over time. It reflects inflation or deflation trends within an economy. Governments and central banks use CPI to adjust monetary policy, wages, and social benefits. CPI typically includes categories like food, housing, transportation, and healthcare. A rising CPI indicates increasing inflation, while a falling CPI may signal deflation. It is calculated monthly and compared to previous periods to assess economic stability. CPI affects purchasing power and is crucial for understanding the cost of living in a country.