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What is consumer price index?

What is consumer price index? Here are some definitions.

Noun
  1. (economics) A statistical estimate of the level of prices of goods and services bought for consumption purposes by households.
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The consumer price index suffered its first contraction in 16 years last year, largely due to lower food and clothing prices.
The price of the television licence is linked to the consumer price index which means that any increase has implications for inflation.
In the present U.S. system, benefits after retirement are indexed to the consumer price index.
But the principal value is adjusted twice a year to reflect inflation, as measured by increases in the consumer price index.
Salary increases for the same period last year averaged 8 per cent against the consumer price index of 5.6 per cent.
By contrast, salary increases for the same period in 2001 increased by 2.4 per cent against the consumer price index.

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