Consumer price index (CPI)

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Consumer price index (CPI)

The ratio of the value of a fixed set of goods and services in current-period prices to its value in previous (reference) period prices. This index is calculated by the Federal State Statistics Service. The CPI reflects changes over time in the overall level of prices for goods and services purchased by households for private consumption. The CPI is calculated based on data on the actual structure of consumer spending and is, therefore, the principal indicator of the cost of living. In addition, the CPI has a range of characteristics making it convenient for common use, namely a simple and clear method of construction, a monthly frequency of calculation, and timely publication. [Bank of Russia]