Consumer Price Index (CPI) - Core CPI - Trimmed Mean CPI

 

 

Definition: Measures the rate of inflation experienced by consumers on a fixed basket of goods and services. The change can be calculated monthly, quarterly or yearly. Many central banks use their country's CPI figure as one of the most important indicators when deciding interest rates.

 

 

Additional Info: The Core figure excludes volatile items. Volatile items are:

Food, Energy Alcohol and Tobacco (UK & Eurozone)

Food and Energy (US)

The Eight most volatile items (Canada). These items are:
1. Fruit, fruit preparation and nuts
2. Vegetables and vegetable preparation
3. Tobacco products and somekers' supplies
4. Mortgage interest costs
5. Inter-city transportation
6. Natural Gas
7. Gasoline
8. Fuel oil & other fuels
Click here for visual analysis and historical data for the Canadian Core CPI.

Fresh Food (JPN)

Trimmed Mean CPI factors in the seasonality of certain components. Price changes that fall in the outside 30% of all price change distribution for CPI components are ignored.

Related Terms: PCE Price Index

Back 

 

Did you find this definition helpful? Webmasters can add it to their site completely free! Just copy and paste the code below into the HTML code of the page where you would like 'Consumer Price Index (CPI)' to appear. It will be displayed in the form of a blue underlined link.

<a href="http://www.passion-trading.com/dictionary/c/cpi.html" target="_blank">consumer price index (CPI)</a>