What is Consumer Price Index
Consumer Price Index is defined as the leading index for analyzing changes in the level of prices in the economy.
The index measures the percentage increase or decrease in the price of a representative basket of products in the economy known as the products basket. The products basket includes all the products and services consumed by the average family during the month.
The price of the basket is updated according to an extensive sample testing of the prices of the products in the market.
The Consumer Price Index is published monthly by the Central Bureau of Statistics. The annual rate of change in the Consumer Price Index (from the end of December of one year to the end of December of the following year) expresses the annual rate of inflation in the economy.