<P> The CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically . Sub-indices and sub-sub - indices are computed for different categories and sub-categories of goods and services , being combined to produce the overall index with weights reflecting their shares in the total of the consumer expenditures covered by the index . It is one of several price indices calculated by most national statistical agencies . The annual percentage change in a CPI is used as a measure of inflation . A CPI can be used to index ( i.e. , adjust for the effect of inflation ) the real value of wages , salaries , pensions , for regulating prices and for deflating monetary magnitudes to show changes in real values . In most countries , the CPI , along with the population census , is one of the most closely watched national economic statistics . </P>
<P> The CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically . Sub-indices and sub-sub - indices are computed for different categories and sub-categories of goods and services , being combined to produce the overall index with weights reflecting their shares in the total of the consumer expenditures covered by the index . It is one of several price indices calculated by most national statistical agencies . The annual percentage change in a CPI is used as a measure of inflation . A CPI can be used to index ( i.e. , adjust for the effect of inflation ) the real value of wages , salaries , pensions , for regulating prices and for deflating monetary magnitudes to show changes in real values . In most countries , the CPI , along with the population census , is one of the most closely watched national economic statistics . </P>
the percentage change in the cpi can be used to measure
the percentage change in the cpi can be used to measure
inflation
inflation