Consumer Price Index

The Consumer Price Index calculator computes the index based on the Cost of Current Year, and the Cost of the Base Year.

INSTRUCTIONS: Choose units and enter the following:

• (CCY) Cost in Current Year
• (CBY) Cost in Base Year

Consumer Price Index (CPI): The calculator returns the value as a real number.

The Math / Science

This formula is used to measure the average change of prices for consumer goods and services over time.  This formula works for one item of for a list of items. The most common application is for a list of items referred to a basket.  In the classic CPI calculation, the cost of a basket of items is computed on a regular basis where the items in the basket roughly match a list of goods consumed by members in the community (e.g. citizens of a country).    The most common items are:

• Food (at home and away)
• Energy
  • Fuel for vehicles
  • Fuel for home heating and cooling
• Other Commodities and Services
  • Vehicles (new and used)
  • Clothing
  • Medical Care

The list of items the U.S. CPI basket can be seen in the U.S. Bureau of Labor Statistics CPI report (https://www.bls.gov/news.release/pdf/cpi.pdf)