Consumer Price Index (CPI)

Introduction to Consumer Price Index (CPI) Calculator

The Consumer Price Index (CPI) measures changes in the price level of a weighted average market basket of consumer goods and services purchased by households. It is used to determine inflation and as a gauge of the effectiveness of economic policies.

Parameters:

• currentCost = current cost of the market basket
• previousCost = previous cost of the market basket
• baseYearCost = cost of the market basket in the base year
• baseYear = base year of the CPI calculation

Output:

• CPI = calculated Consumer Price Index

Data validation

All costs should be non-negative numbers. The base year should be a valid year.

Summary

This calculator helps determine the Consumer Price Index (CPI) based on changes in the cost of a market basket of goods and services relative to a base year.