The Consumer Price Index (CPI) is a statistical measure that tracks the changes in the price level of a basket of consumer goods and services purchased by households over time. It is used to assess price changes associated with the cost of living and is a critical indicator of inflation. The CPI covers various categories such as food and beverages, housing, apparel, transportation, medical care, and education. In India, the CPI is classified into different categories like CPI for Industrial Workers (CPI-IW), CPI for Agricultural Labourers (CPI-AL), and CPI for Rural Labourers (CPI-RL). This index helps policymakers, economists, and businesses to make informed decisions regarding monetary policy, wage adjustments, and economic planning.
