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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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Right now, benefits are set by a complex formula when a person first retires, and then are adjusted for inflation using 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.
Index the 60 per cent of median income to the consumer price index, and by 2001, only 2 per cent of people fell below the line.
In the present U.S. system, benefits after retirement are indexed to the consumer price index.
The consumer price index suffered its first contraction in 16 years last year, largely due to lower food and clothing prices.
In recent years, software publishers have hit consumers with a double whammy that very likely escapes the consumer price index.

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