Learn about the Consumer Price Index (CPI), how it measures inflation, affects your purchasing power, and its significance in economic decision-making.

The Consumer Price Index (CPI) tracks changes in prices of everyday goods and services over time. Without it, accurately measuring inflation — a creeping monster that can swallow economies whole ...

The specific formula for adjustment is also stated in the contract. Commonly, the price adjustment made is a percentage equal to the percent change of the CPI, but a contract may stipulate using a ...