What does CPI stand for in economic terms?

CPI stands for Consumer Price Index. This index measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It is a critical indicator of inflation and reflects the cost of living, impacting economic policy and individual purchasing power. The Consumer Price Index is used by economists and policymakers to assess price stability, set interest rates, and adjust income payments—such as social security benefits—linked to inflation.

The other options do not accurately represent the commonly accepted economic term for CPI. They either refer to incorrect definitions or concepts not used in standard economic discussions. The Consumer Price Index is widely recognized and utilized, making it the correct choice in this context.