Question

What does the consumer price index measure?

Answer 1

The consumer price index or the CPI measures the average change over time in the prices paid by a customer for a market basket of consumer goods and services.

Answer 2

Answer: The consumer price index (CPI ) is a measure that examines the weighted average of prices of the "basket" of consumer goods. Things such as transportation, food or medical care.

The CPI is obtained by taking price changes for each item on the basket and averaging.