noun
Uncommon
CPI
see-pee-EYE
CPI (noun) means Consumer Price Index: a measure of the average change over time in the prices paid by households for a fixed basket of goods and services, used as the main gauge of inflation. Example: “CPI rose by 3.2 per cent in the year to June.”
noun
1
economics Consumer Price Index: a measure of the average change over time in the prices paid by households for a fixed basket of goods and services, used as the main gauge of inflation.
"CPI rose by 3.2 per cent in the year to June."
"Pensions in some schemes are uprated in line with CPI."
2
marketing Cost per install: the amount an advertiser pays for each installation of an app generated by a campaign.
"The team cut its CPI from four dollars to under two."
How to use CPI
Learner’s notesIn plain EnglishThe main number used to say how much prices have gone up.
When to use it
Economic and financial reporting; written in capitals with no full stops.
Memory tip
Say "CPI rose", not "the CPI rose by a percentage point of inflation" — the index is the measure, not the thing measured.
Trace the full origin ↓
Easily confused with
Common pairings
CPI inflation
headline CPI
core CPI
annual CPI rate
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Fill the gap
Can you complete this real example?
_____ rose by 3.2 per cent in the year to June.
Etymology
An initialism of Consumer Price Index.
Synonyms
View more →
consumer price index
inflation index
Frequently asked questions
What is the difference between CPI and RPI?
Both track price changes for households, but they cover different baskets and use different mathematics. RPI includes some housing costs such as mortgage interest that CPI leaves out, and its formula tends to produce a higher figure. The UK no longer treats RPI as a national statistic, though some contracts still use it.
What is core CPI?
Core CPI strips out food and energy prices, which swing sharply for reasons unconnected to the wider economy. Central banks watch it because it gives a steadier picture of the underlying trend in inflation.
Does CPI measure the cost of living?
Only roughly. CPI tracks the price of a fixed basket, so it does not fully capture people substituting cheaper goods, changes in quality, or the very different spending patterns of individual households. Statistical agencies publish separate cost-of-living measures for that reason.
What is the meaning of CPI?
"CPI" (noun) means consumer Price Index: a measure of the average change over time in the prices paid by households for a fixed basket of goods and services, used as the main gauge of inflation.
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