Research Topics:

Consumer Research | Market Statistics

Content Type:

Glossary

Consumer Price Index (CPI) Definition

Compares the current cost of purchasing a fixed set of goods and services with the cost of the same set at a specific base year. The resulting measures can be compared over time.

The Consumer Price Index, or CPI, compares the current cost of purchasing a fixed set of goods and services now to the cost of the same set over time. It helps track inflation and provides information about how the purchasing power of consumers is impacted by changes in price. For marketing professionals and businesses, this statistic is vital in determining strategic marketing decisions. What’s more, the CPI assists organizations with identifying market trends, adjusting pricing strategies and anticipating changes in consumer demand. 

Who relies on the CPI?

Businesses, market researchers and policymakers look to CPI for a variety of reasons. For instance, businesses use CPI to decipher how price changes impact consumer behavior and pricing pressures. CPI is also looked up to foresee changes in consumer preferences because of shrinking purchasing power. Policymakers use CPI to determine economic policies.

Why should I care about the CPI?

CPI impacts consumer purchasing demand for products and services. The measure tracks inflation rates and consumer purchasing power, which are vital to business and government decision making. Businesses that focus on movement in CPI can stay relevant and successful in their marketing efforts.