Consumer Price Index

The Consumer Price Index (CPI) is one of the most critical economic indicators used worldwide to measure inflation, track price changes, and assess the cost of living. It is used by policymakers, businesses, and consumers to make informed economic decisions. Over the past 15 years, the CPI has experienced fluctuations influenced by economic crises, market disruptions, and policy shifts.

Since the end of World War II, the United States has experienced almost continuous inflation— the general rise in the price of goods and services. It would be difficult to find a similar period in American history before that war. Indeed, prior to World War II, the United States often experienced long periods of deflation. It is worth noting that the Consumer Price Index (CPI) in 1941 was virtually at the same level as in 1807.