CPI-U Formula The more common CPI-U calculation ... The Bottom Line The Consumer Price Index measures the average change in prices paid by consumers over time for a basket of goods and services.

Her expertise is in personal finance and investing, and real estate. The Producer Price Index (PPI) measures the average change over time in the prices domestic producers receive for their output.

Because the PCE and CPI differ in their formula, weighting, scope and other effects, their results are different. The Federal Reserve prefers to use the PCE price index to measure inflation.

The Consumer Price Index (CPI) is used as a chief barometer of inflation. But what is it and how is it calculated? CNBC Select explains below and recommends some cards that could help put money ...

"According to the formula, COLAs are based on increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)," the website states. The CPI, as a proxy for inflation ...