The Consumer Price Index (CPI) is a measure of the:​

A) cost of a market basket of consumer goods and services relative to its cost in a base year.
B) change in the average price of a market basket of necessary goods and services.
C) cost of a market basket of consumer goods relative to the previous year.
D) change in the average price of all intermediate goods and services.
E) average price of all final goods and services relative to the average price in the previous year.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, indicating the level of inflation.

Market Basket

A collection of goods and services used to monitor price changes for consumer expenditures, often used in calculating inflation indices.

Base Year

A specific year against which economic growth is measured, serving as a benchmark for real value comparisons over time.