Is CPI based on commonly used consumer goods only?

Yes, the Consumer Price Index (CPI) is based on a basket of commonly used consumer goods and services, which reflects the spending habits of households. This basket includes a variety of categories such as food, housing, clothing, transportation, and healthcare. The CPI is designed to measure inflation by tracking changes in the prices of these items over time. However, it does not encompass all goods and services, focusing instead on those that are typically purchased by consumers.