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What is the Consumer Price Index?

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According to the Bureau of Labor Statistics, the Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Percent change since 1980:

Year Percent Change
1980 13.5
1981 10.3
1982 6.2
1983 3.2
1984 4.3
1985 3.6
1986 1.9
1987 3.6
1988 4.1
1989 4.8
1990 5.4
1991 4.2
1992 3.0
1993 3.0
1994 2.6
1995 2.8
1996 3.0
1997 2.3
1998 1.6
1999 2.2
2000 3.4
2001 2.8
2002 1.6
2003 2.3
2004 2.7
2005 3.4

 

SOURCE: Consumer Price Index (with data back to 1913) and Federal Reserve Bank of Minneapolis

UPDATED: 4/8/2006