Consumer Price Index
The Consumer Price Index (CPI) measures the change in the cost of a basket of goods and services over time, reflecting inflation levels. It is calculated by tracking the weighted average percentage change in the prices of these goods and services. If the CPI increases, it indicates that inflation is rising, meaning the cost of living is becoming more expensive. In India, the CPI replaced the Wholesale Price Index (WPI) as the primary measure of inflation in 2013, offering a more accurate reflection of changes in consumer prices rather than wholesale or producer prices.
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