The Consumer Price Index (CPI) stands as a critical economic indicator, measuring the average change over time in the prices of a basket of goods and services commonly purchased by urban consumers. This index provides essential insights into inflation and deflation trends within an economy. Available for the United States and various geographical areas, the CPI is a fundamental tool for economists, policymakers, and the public alike to understand the ebb and flow of price changes. Alongside the overall CPI, detailed average price data for specific categories such as utilities, automotive fuel, and food items are also tracked, offering a granular view of price movements across different sectors.
Understanding the CPI involves recognizing what it represents and how it is calculated. At its core, the CPI reflects the purchasing power of consumers. Imagine a fixed basket filled with everyday items – from groceries and gasoline to housing and healthcare. The CPI tracks how the total cost of this basket changes over time. This “market basket” is carefully curated to represent the spending habits of urban consumers, capturing a wide range of goods and services that reflect typical household expenditures.
The significance of the CPI extends across various aspects of economic analysis and decision-making. Firstly, it is the most widely recognized measure of inflation. When the CPI rises, it indicates that the general level of prices is increasing, meaning each dollar buys less than it did before. Conversely, a decreasing CPI can signal deflation. By monitoring the CPI, economists can gauge the rate at which purchasing power is eroding or improving.
Furthermore, the CPI plays a crucial role in informing monetary policy. Central banks, like the Federal Reserve in the U.S., closely watch CPI trends to make decisions about interest rates. If inflation, as indicated by a rising CPI, is deemed too high, central banks may raise interest rates to cool down the economy and curb price increases. Conversely, if inflation is too low, or if there’s a risk of deflation, interest rates might be lowered to stimulate economic activity.
Beyond macroeconomic policy, the CPI also directly impacts individuals and businesses. It is frequently used to adjust wages, salaries, and government benefits to keep pace with inflation. For instance, Social Security benefits in the United States are adjusted annually based on the CPI to ensure that retirees’ purchasing power is maintained. Similarly, many labor contracts include cost-of-living adjustments (COLAs) tied to the CPI. Businesses also utilize CPI data for price adjustments and forecasting, helping them make informed decisions about pricing strategies and inventory management.
The table below, derived from the Consumer Price Index data, illustrates the 12-month percentage change in various categories as of January 2025, offering a snapshot of how different sectors contribute to the overall CPI.
<div>
<div>
<div>
<table>
<caption>
<span>12-month percentage change, Consumer Price Index, selected categories, January 2025, not seasonally adjusted</span>
</caption>
<thead>
<tr>
<th id="cpi_rc_1cpibycat.h.1.1">Category</th>
<th id="cpi_rc_1cpibycat.h.1.2">12-month percent change, Jan 2025</th>
</tr>
</thead>
<tbody>
<tr>
<th contentscore="92.783505154639" headers="cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.1">
<p>All items</p>
</th>
<td headers="cpi_rc_1cpibycat.r.1 cpi_rc_1cpibycat.h.1.2">
<span>3.0%</span>
</td>
</tr>
<tr>
<th contentscore="43.478260869565" headers="cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.2">
<p>Food</p>
</th>
<td headers="cpi_rc_1cpibycat.r.2 cpi_rc_1cpibycat.h.1.2">
<span>2.5%</span>
</td>
</tr>
<tr>
<th contentscore="97.560975609756" headers="cpi_rc_1cpibycat.r.2 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.2.1">
<p>Food at home</p>
</th>
<td headers="cpi_rc_1cpibycat.r.2.1 cpi_rc_1cpibycat.h.1.2">
<span>1.9%</span>
</td>
</tr>
<tr>
<th contentscore="165.64417177914" headers="cpi_rc_1cpibycat.r.2 cpi_rc_1cpibycat.r.2.1 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.2.1.1">
<p>Cereals and bakery products</p>
</th>
<td headers="cpi_rc_1cpibycat.r.2.1.1 cpi_rc_1cpibycat.h.1.2">
<span>0.4%</span>
</td>
</tr>
<tr>
<th contentscore="183.72289156627" headers="cpi_rc_1cpibycat.r.2 cpi_rc_1cpibycat.r.2.1 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.2.1.2">
<p>Meats, poultry, fish, and eggs</p>
</th>
<td headers="cpi_rc_1cpibycat.r.2.1.2 cpi_rc_1cpibycat.h.1.2">
<span>6.1%</span>
</td>
</tr>
<tr>
<th contentscore="160.49382716049" headers="cpi_rc_1cpibycat.r.2 cpi_rc_1cpibycat.r.2.1 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.2.1.3">
<p>Dairy and related products</p>
</th>
<td headers="cpi_rc_1cpibycat.r.2.1.3 cpi_rc_1cpibycat.h.1.2">
<span>1.2%</span>
</td>
</tr>
<tr>
<th contentscore="133.75796178344" headers="cpi_rc_1cpibycat.r.2 cpi_rc_1cpibycat.r.2.1 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.2.1.4">
<p>Fruits and vegetables</p>
</th>
<td headers="cpi_rc_1cpibycat.r.2.1.4 cpi_rc_1cpibycat.h.1.2">
<span>0.3%</span>
</td>
</tr>
<tr>
<th contentscore="248.61878453039" headers="cpi_rc_1cpibycat.r.2 cpi_rc_1cpibycat.r.2.1 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.2.1.5">
<p>Nonalcoholic beverages and beverage materials</p>
</th>
<td headers="cpi_rc_1cpibycat.r.2.1.5 cpi_rc_1cpibycat.h.1.2">
<span>2.2%</span>
</td>
</tr>
<tr>
<th contentscore="116.88311688312" headers="cpi_rc_1cpibycat.r.2 cpi_rc_1cpibycat.r.2.1 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.2.1.6">
<p>Other food at home</p>
</th>
<td headers="cpi_rc_1cpibycat.r.2.1.6 cpi_rc_1cpibycat.h.1.2">
<span>0.8%</span>
</td>
</tr>
<tr>
<th contentscore="146.15384615385" headers="cpi_rc_1cpibycat.r.2 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.2.2">
<p>Food away from home</p>
</th>
<td headers="cpi_rc_1cpibycat.r.2.2 cpi_rc_1cpibycat.h.1.2">
<span>3.4%</span>
</td>
</tr>
<tr>
<th contentscore="175.75757575758" headers="cpi_rc_1cpibycat.r.2 cpi_rc_1cpibycat.r.2.2 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.2.2.1">
<p>Full service meals and snacks</p>
</th>
<td headers="cpi_rc_1cpibycat.r.2.2.1 cpi_rc_1cpibycat.h.1.2">
<span>3.3%</span>
</td>
</tr>
<tr>
<th contentscore="190.47619047619" headers="cpi_rc_1cpibycat.r.2 cpi_rc_1cpibycat.r.2.2 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.2.2.2">
<p>Limited service meals and snacks</p>
</th>
<td headers="cpi_rc_1cpibycat.r.2.2.2 cpi_rc_1cpibycat.h.1.2">
<span>3.3%</span>
</td>
</tr>
<tr>
<th contentscore="63.829787234043" headers="cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.3">
<p>Energy</p>
</th>
<td headers="cpi_rc_1cpibycat.r.3 cpi_rc_1cpibycat.h.1.2">
<span>1.0%</span>
</td>
</tr>
<tr>
<th contentscore="139.53488372093" headers="cpi_rc_1cpibycat.r.3 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.3.1">
<p>Energy commodities</p>
</th>
<td headers="cpi_rc_1cpibycat.r.3.1 cpi_rc_1cpibycat.h.1.2">
<span>-0.5%</span>
</td>
</tr>
<tr>
<th contentscore="55.555555555556" headers="cpi_rc_1cpibycat.r.3 cpi_rc_1cpibycat.r.3.1 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.3.1.1">
<p>Fuel oil</p>
</th>
<td headers="cpi_rc_1cpibycat.r.3.1.1 cpi_rc_1cpibycat.h.1.2">
<span>-5.3%</span>
</td>
</tr>
<tr>
<th contentscore="128.20512820513" headers="cpi_rc_1cpibycat.r.3 cpi_rc_1cpibycat.r.3.1 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.3.1.2">
<p>Gasoline (all types)</p>
</th>
<td headers="cpi_rc_1cpibycat.r.3.1.2 cpi_rc_1cpibycat.h.1.2">
<span>-0.2%</span>
</td>
</tr>
<tr>
<th contentscore="119.04761904762" headers="cpi_rc_1cpibycat.r.3 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.3.2">
<p>Energy services</p>
</th>
<td headers="cpi_rc_1cpibycat.r.3.2 cpi_rc_1cpibycat.h.1.2">
<span>2.5%</span>
</td>
</tr>
<tr>
<th contentscore="74.829931972789" headers="cpi_rc_1cpibycat.r.3 cpi_rc_1cpibycat.r.3.2 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.3.2.1">
<p>Electricity</p>
</th>
<td headers="cpi_rc_1cpibycat.r.3.2.1 cpi_rc_1cpibycat.h.1.2">
<span>1.9%</span>
</td>
</tr>
<tr>
<th contentscore="122.58064516129" headers="cpi_rc_1cpibycat.r.3 cpi_rc_1cpibycat.r.3.2 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.3.2.2">
<p>Natural gas (piped)</p>
</th>
<td headers="cpi_rc_1cpibycat.r.3.2.2 cpi_rc_1cpibycat.h.1.2">
<span>4.9%</span>
</td>
</tr>
<tr>
<th contentscore="254.23728813559" headers="cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.4">
<p>All items less food and energy</p>
</th>
<td headers="cpi_rc_1cpibycat.r.4 cpi_rc_1cpibycat.h.1.2">
<span>3.3%</span>
</td>
</tr>
<tr>
<th contentscore="283.87096774194" headers="cpi_rc_1cpibycat.r.4 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.4.1">
<p>Commodities less food and energy commodities</p>
</th>
<td headers="cpi_rc_1cpibycat.r.4.1 cpi_rc_1cpibycat.h.1.2">
<span>-0.1%</span>
</td>
</tr>
<tr>
<th contentscore="48.951048951049" headers="cpi_rc_1cpibycat.r.4 cpi_rc_1cpibycat.r.4.1 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.4.1.1">
<p>Apparel</p>
</th>
<td headers="cpi_rc_1cpibycat.r.4.1.1 cpi_rc_1cpibycat.h.1.2">
<span>0.4%</span>
</td>
</tr>
<tr>
<th contentscore="81.081081081081" headers="cpi_rc_1cpibycat.r.4 cpi_rc_1cpibycat.r.4.1 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.4.1.2">
<p>New vehicles</p>
</th>
<td headers="cpi_rc_1cpibycat.r.4.1.2 cpi_rc_1cpibycat.h.1.2">
<span>-0.3%</span>
</td>
</tr>
<tr>
<th contentscore="128.20512820513" headers="cpi_rc_1cpibycat.r.4 cpi_rc_1cpibycat.r.4.1 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.4.1.3">
<p>Used cars and trucks</p>
</th>
<td headers="cpi_rc_1cpibycat.r.4.1.3 cpi_rc_1cpibycat.h.1.2">
<span>1.0%</span>
</td>
</tr>
<tr>
<th contentscore="150" headers="cpi_rc_1cpibycat.r.4 cpi_rc_1cpibycat.r.4.1 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.4.1.4">
<p>Medical care commodities</p>
</th>
<td headers="cpi_rc_1cpibycat.r.4.1.4 cpi_rc_1cpibycat.h.1.2">
<span>2.3%</span>
</td>
</tr>
<tr>
<th contentscore="122.58064516129" headers="cpi_rc_1cpibycat.r.4 cpi_rc_1cpibycat.r.4.1 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.4.1.5">
<p>Alcoholic beverages</p>
</th>
<td headers="cpi_rc_1cpibycat.r.4.1.5 cpi_rc_1cpibycat.h.1.2">
<span>1.4%</span>
</td>
</tr>
<tr>
<th contentscore="170.73170731707" headers="cpi_rc_1cpibycat.r.4 cpi_rc_1cpibycat.r.4.1 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.4.1.6">
<p>Tobacco and smoking products</p>
</th>
<td headers="cpi_rc_1cpibycat.r.4.1.6 cpi_rc_1cpibycat.h.1.2">
<span>6.8%</span>
</td>
</tr>
<tr>
<th contentscore="207.14285714286" headers="cpi_rc_1cpibycat.r.4 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.4.2">
<p>Services less energy services</p>
</th>
<td headers="cpi_rc_1cpibycat.r.4.2 cpi_rc_1cpibycat.h.1.2">
<span>4.3%</span>
</td>
</tr>
<tr>
<th contentscore="48.951048951049" headers="cpi_rc_1cpibycat.r.4 cpi_rc_1cpibycat.r.4.2 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.4.2.1">
<p>Shelter</p>
</th>
<td headers="cpi_rc_1cpibycat.r.4.2.1 cpi_rc_1cpibycat.h.1.2">
<span>4.4%</span>
</td>
</tr>
<tr>
<th contentscore="132.97872340426" headers="cpi_rc_1cpibycat.r.4 cpi_rc_1cpibycat.r.4.2 cpi_rc_1cpibycat.r.4.2.1 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.4.2.1.1">
<p>Rent of primary residence</p>
</th>
<td headers="cpi_rc_1cpibycat.r.4.2.1.1 cpi_rc_1cpibycat.h.1.2">
<span>4.2%</span>
</td>
</tr>
<tr>
<th contentscore="185" headers="cpi_rc_1cpibycat.r.4 cpi_rc_1cpibycat.r.4.2 cpi_rc_1cpibycat.r.4.2.1 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.4.2.1.2">
<p>Owners' equivalent rent of residences</p>
</th>
<td headers="cpi_rc_1cpibycat.r.4.2.1.2 cpi_rc_1cpibycat.h.1.2">
<span>4.6%</span>
</td>
</tr>
<tr>
<th contentscore="133.75796178344" headers="cpi_rc_1cpibycat.r.4 cpi_rc_1cpibycat.r.4.2 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.4.2.2">
<p>Medical care services</p>
</th>
<td headers="cpi_rc_1cpibycat.r.4.2.2 cpi_rc_1cpibycat.h.1.2">
<span>2.7%</span>
</td>
</tr>
<tr>
<th contentscore="109.28961748634" headers="cpi_rc_1cpibycat.r.4 cpi_rc_1cpibycat.r.4.2 cpi_rc_1cpibycat.r.4.2.2 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.4.2.2.1">
<p>Physicians' services</p>
</th>
<td headers="cpi_rc_1cpibycat.r.4.2.2.1 cpi_rc_1cpibycat.h.1.2">
<span>2.1%</span>
</td>
</tr>
<tr>
<th contentscore="94.444444444444" headers="cpi_rc_1cpibycat.r.4 cpi_rc_1cpibycat.r.4.2 cpi_rc_1cpibycat.r.4.2.2 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.4.2.2.2">
<p>Hospital services</p>
</th>
<td headers="cpi_rc_1cpibycat.r.4.2.2.2 cpi_rc_1cpibycat.h.1.2">
<span>2.9%</span>
</td>
</tr>
<tr>
<th contentscore="144.65408805031" headers="cpi_rc_1cpibycat.r.4 cpi_rc_1cpibycat.r.4.2 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.4.2.3">
<p>Transportation services</p>
</th>
<td headers="cpi_rc_1cpibycat.r.4.2.3 cpi_rc_1cpibycat.h.1.2">
<span>8.0%</span>
</td>
</tr>
<tr>
<th contentscore="180.90452261307" headers="cpi_rc_1cpibycat.r.4 cpi_rc_1cpibycat.r.4.2 cpi_rc_1cpibycat.r.4.2.3 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.4.2.3.1">
<p>Motor vehicle maintenance and repair</p>
</th>
<td headers="cpi_rc_1cpibycat.r.4.2.3.1 cpi_rc_1cpibycat.h.1.2">
<span>5.9%</span>
</td>
</tr>
<tr>
<th contentscore="123.65591397849" headers="cpi_rc_1cpibycat.r.4 cpi_rc_1cpibycat.r.4.2 cpi_rc_1cpibycat.r.4.2.3 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.4.2.3.2">
<p>Motor vehicle insurance</p>
</th>
<td headers="cpi_rc_1cpibycat.r.4.2.3.2 cpi_rc_1cpibycat.h.1.2">
<span>11.8%</span>
</td>
</tr>
<tr>
<th contentscore="68.571428571429" headers="cpi_rc_1cpibycat.r.4 cpi_rc_1cpibycat.r.4.2 cpi_rc_1cpibycat.r.4.2.3 cpi_rc_1cpibycat.h.1.1" id="cpi_rc_1cpibycat.r.4.2.3.3">
<p>Airline fare</p>
</th>
<td headers="cpi_rc_1cpibycat.r.4.2.3.3 cpi_rc_1cpibycat.h.1.2">
<span>7.1%</span>
</td>
</tr>
</tbody>
</table>
</div>
</div>
</div>Chart: 12-month percentage change, Consumer Price Index, selected categories, January 2025, not seasonally adjusted
For those seeking the very latest figures, the Consumer Price Index is updated monthly. The most recent report indicates a +0.5% change in January 2025. Access to detailed news releases and historical data is readily available through the Bureau of Labor Statistics (BLS) website, the primary source for CPI information.
Stay Informed: The next CPI data release, covering February 2025, is scheduled for March 12, 2025. Regularly checking the BLS resources ensures you remain up-to-date with the latest consumer price trends and their implications for the economy.
Further Exploration: For deeper dives into the CPI, the BLS offers a range of publications. “The Economics Daily” provides concise analyses, while the “Handbook Of Methods” offers a comprehensive overview of CPI methodology. The “Monthly Labor Review” and “Beyond the Numbers” series present in-depth articles exploring various facets of consumer prices and economic trends related to the CPI. These resources can enhance your understanding of this vital economic indicator and its broader context.
Explore articles from The Economics Daily and other BLS publications for deeper insights into CPI.
