What is a consumer price index a monthly set of figures indicating the pace of increase or decrease in the costs of goods and services?

The Consumer Price Index (CPI) is a monthly economic indicator that measures the average change over time in the prices paid by consumers for a basket of goods and services. It reflects inflation or deflation trends by comparing current prices to those from a base year. The CPI is crucial for economic policy decisions, cost-of-living adjustments, and understanding purchasing power. By tracking these fluctuations, it helps gauge the overall economic health and consumer spending patterns.