Consumer price index

Consumer price index (CPI) is a measure of the overall level of prices that shows the cost of a fixed basket of consumer goods relative to the cost of the same basket in a base year.

Definition

According to Macroeconomics by Mankiw (7th edition),

Consumer price index (CPI). A measure of the overall level of prices that shows the cost of a fixed basket of consumer goods relative to the cost of the same basket in a base year.