CPI in United States

The CPI represents changes in prices of all goods and services purchased for household consumption. This indicator prices range from Services, to the tax payable on purchases of goods.

Prices of Goods and used for index calculation services are collected from 87 urban areas of the country and approximately 23,000 retail and service areas.

Its importance is given by its different uses. As an economic indicator, since it is a measure of the evolution of inflation as a deflator of other series, to adjust the series to variations in prices, and as a factor in setting some series such as salaries, so we review the CPI. Since 1985 the CPI is used to adjust the structure of federal revenues, to thereby prevent an increase in inflation raise taxes.

To analyze the trend in prices the most volatile elements, which are the food and energy are removed. This is core inflation. The CPI is the subject of several revisions, so the preliminary data should always be taken with caution.