Consumer price index in the context of "Deflation"

In economics, inflation is an increase in the average price of goods and services in terms of money. This increase is measured using a price index, typically a consumer price index (CPI). When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money. The opposite of CPI inflation is deflation, a decrease in the general price level of goods and services. The common measure of inflation is the inflation rate, the annualized percentage change in a general price index.

Changes in inflation are widely attributed to fluctuations in real demand for goods and services (also known as demand shocks, including changes in fiscal or monetary policy), changes in available supplies such as during energy crises (also known as supply shocks), or changes in inflation expectations, which may be self-fulfilling. Moderate inflation affects economies in both positive and negative ways. The negative effects would include an increase in the opportunity cost of holding money; uncertainty over future inflation, which may discourage investment and savings; and, if inflation were rapid enough, shortages of goods as consumers begin hoarding out of concern that prices will increase in the future. Positive effects include reducing unemployment due to nominal wage rigidity, allowing the central bank greater freedom in carrying out monetary policy, encouraging loans and investment instead of money hoarding, and avoiding the inefficiencies associated with deflation.

The cost of living is the cost of maintaining a certain standard of living for an individual or a household. Changes in the cost of living over time can be measured in a cost-of-living index. Cost of living calculations are also used to compare the cost of maintaining a certain standard of living in different geographic areas. Differences in the cost of living between locations can be measured in terms of purchasing power parity rates. A sharp rise in the cost of living can trigger a cost of living crisis, where purchasing power is lost and, for some people, their previous lifestyle is no longer affordable.

The link between income and health is well-established. People who are facing poverty are less likely to seek regular and professional medical advice, receive dental care, or resolve health issues. The cost of prescription medicine is often cited as a metric in cost of living research and consumer price indices. Cost of living pressures may lead to household energy insecurity or fuel poverty as well as housing stress.As the cost of living steadily increases, the amount of household income necessary for a financially comfortable life subsequently increases, thus resulting in the number of people who do possess the privilege of a comfortable financial situation decreasing over time. Said privileges of financial comfort become more exclusive to higher classes as the cost of living becomes difficult to afford for more and more people.

A price index (plural: "price indices" or "price indexes") is a normalized average (typically a weighted average) of price relatives for a given class of goods or services in a specific region over a defined time period. It is a statistic designed to measure how these price relatives, as a whole, differ between time periods or geographical locations, often expressed relative to a base period set at 100.

Price indices serve multiple purposes. Broad indices, like the Consumer price index, reflect the economy’s general price level or cost of living, while narrower ones, such as the Producer price index, assist producers with pricing and business planning. They can also guide investment decisions by tracking price trends.  

Data (/ˈdeɪtə/ DAY-tə, US also /ˈdætə/ DAT-ə) are a collection of discrete or continuous values that convey information, describing the quantity, quality, fact, statistics, other basic units of meaning, or simply sequences of symbols that may be further interpreted formally. A datum is an individual value in a collection of data. Data are usually organized into structures such as tables that provide additional context and meaning, and may themselves be used as data in larger structures. Data may be used as variables in a computational process. Data may represent abstract ideas or concrete measurements.Data are commonly used in scientific research, economics, and virtually every other form of human organizational activity. Examples of data sets include price indices (such as the consumer price index), unemployment rates, literacy rates, and census data. In this context, data represent the raw facts and figures from which useful information can be extracted.

Data are collected using techniques such as measurement, observation, query, or analysis, and are typically represented as numbers or characters that may be further processed. Field data are data that are collected in an uncontrolled, in-situ environment. Experimental data are data that are generated in the course of a controlled scientific experiment. Data are analyzed using techniques such as calculation, reasoning, discussion, presentation, visualization, or other forms of post-analysis. Prior to analysis, raw data (or unprocessed data) is typically cleaned: Outliers are removed, and obvious instrument or data entry errors are corrected.

The Bank of Korea (BOK; Korean: 한국은행) is the central bank of South Korea and issuer of South Korean won. It was established on 12 June 1950 in Seoul, South Korea.

The bank's primary purpose is price stability. For that, the bank targets inflation. The 2016–18 target is consumer price inflation of 2.0%.

An economic indicator is a statistic about an economic activity. Economic indicators allow analysis of economic performance and predictions of future performance. One application of economic indicators is the study of business cycles. Economic indicators include various indices, earnings reports, and economic summaries: for example, the unemployment rate, quits rate (quit rate in American English), housing starts, consumer price index (a measure for inflation), inverted yield curve, consumer leverage ratio, industrial production, bankruptcies, gross domestic product, broadband internet penetration, retail sales, price index, and changes in credit conditions.

The leading business cycle dating committee in the United States of America is the private National Bureau of Economic Research. The Bureau of Labor Statistics is the principal fact-finding agency for the U.S. government in the field of labor economics and statistics. Other producers of economic indicators includes the United States Census Bureau and United States Bureau of Economic Analysis.

The general price level is a hypothetical measure of overall prices for some set of goods and services (the consumer basket), in an economy or monetary union during a given interval (generally one day), normalized relative to some base set. Typically, the general price level is approximated with a daily price index, normally the Daily CPI. The general price level can change more than once per day during hyperinflation.

This page lists details of the consumer price index by country.