Abbreviation for Consumer Price Index. Like a retail price index (RPI), a CPI is an index of inflation. It is calculated by collecting and comparing the prices of a set basket of goods and services bought by a typical consumer at regular intervals over time. European Union member countries each publish a Harmonised Index of Consumer Prices (HICP), a measure which allows comparisons to be made across the EU.

See also: PPI, Core Inflation, http://www.statistics.gov.uk/cci/nugget.asp?id=953