What does CPI stand for in economics?
Answer (2)
CPI stands for Consumer Price Index. It is one of the most important tools used by economists and governments to measure the average change in prices over time of goods and services typically purchased by households. Think of it as a shopping basket filled with common things that Filipino families buy every day, such as rice, electricity, transportation fare, gasoline, and even school supplies.For example, if the CPI of the Philippines in 2023 is higher than in 2022, this means that prices of everyday goods have increased — this is a sign of inflation. The Philippine Statistics Authority (PSA) releases monthly CPI data which helps the government monitor how the cost of living is changing. If the CPI goes up too fast, it means many families can afford less, especially those with fixed incomes. This is why wage increases, government subsidies, and policies are often based on CPI movements. So, the CPI does not just tell us about prices—it affects real lives: whether students can afford baon, if jeepney fare increases, or if food prices become too expensive for low-income families.Understanding CPI helps us better understand our daily expenses and why prices seem higher compared to last year.
In economics, CPI stands for Consumer Price Index. It measures the average change over time in the prices paid by consumers for a typical basket of goods and services. CPI is used to track inflation and the cost of living.
