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What is consumer price index?

What is consumer price index? Here are some definitions.

Noun
  1. (economics) A statistical estimate of the level of prices of goods and services bought for consumption purposes by households.
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The consumer price index suffered its first contraction in 16 years last year, largely due to lower food and clothing prices.
Salary increases for the same period last year averaged 8 per cent against the consumer price index of 5.6 per cent.
By contrast, salary increases for the same period in 2001 increased by 2.4 per cent against the consumer price index.
In the present U.S. system, benefits after retirement are indexed to the consumer price index.
In recent years, software publishers have hit consumers with a double whammy that very likely escapes the consumer price index.
It also announced a new mechanism that appeared to link the licence fee to the consumer price index.

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