80,000+ prices tracked
How the Consumer Price Index is measured
The Consumer Price Index (CPI) measures the average price change of a fixed basket of consumer goods and services month over month. The Bureau of Labor Statistics samples 80,000+ price quotes monthly across housing, food, transportation, healthcare, and other categories. Critics note that CPI excludes asset prices (housing prices, stocks) and substitutes lower-cost alternatives — both of which understate the inflation that households actually feel.
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Try calculatorKey takeaways
04 · ideas- BLS surveys 80,000+ prices in 23 geographic areas monthly
- Shelter is the largest component at about 33% of CPI
- Core CPI excludes food and energy to reduce volatility
- PCE — not CPI — is the Fed's primary inflation target
The Consumer Price Index (CPI) measures the average change in prices paid by urban consumers for a market basket of goods and services. Published by the Bureau of Labor Statistics (BLS), it is the most widely cited inflation measure in the United States.
CPI components by approximate weight:
| Category | Share |
|---|---|
| Shelter (housing) | ~33% |
| Food | ~14% |
| Energy | ~7% |
| Medical care | ~7% |
| Transportation | ~8% |
| Other | ~31% |
CPI-U (All Urban Consumers): The standard headline figure, covering 93% of the US population.
Core CPI: Excludes food and energy, which are more volatile. Used to identify underlying inflation trends.