The common term for the Consumer Price Index or CPI. Prepared by the U.S. Department of Labor, the CPI reflects the monthly changes in price (usually upward) of common consumer goods and services. Contract clauses that tie wages to the CPI are called "COLAs" or "escalator" clauses.
A cost-of-living index measures the cost of goods and services, typically over time. Price indexes, such as the U.S. Consumer Price Index, are examples of these indexes.
a useful way to consider welfare changes caused by changes in factors exogenous to the individual household, such as inflation , and the monetary , fiscal , and trade policies of governments