CPI (Consumer Price Index)

The Consumer Price Index (CPI) is an official measure of inflation used in procurement to track the changes in prices of goods and services over time. It measures price-level changes by collecting data from a representative sample of retail businesses, service providers, landlords and other sources. The CPI is an important measure for staying informed on economic trends and budgeting for long-term planning purposes. For procurement officers, being aware of the current CPI can aid in forming accurate estimates for budget forecasts and contract negotiations.