Consumer Price Index For All Urban Consumers (CPI-U)

Loading the player...

DEFINITION of 'Consumer Price Index For All Urban Consumers (CPI-U)'

A measure that examines the changes in the price of a basket of goods and services purchased by urban consumers. The urban consumer population is deemed by many as a better representative measure of the general public because most of the country's population lives in highly populated areas, which represent close to 90\% of the total population.

BREAKING DOWN 'Consumer Price Index For All Urban Consumers (CPI-U)'

CPI is the most frequently used statistic for identifying inflation or deflation. The CPI-U only considers the prices paid for goods and services by those that live in urban areas. Rising CPI-U figures means that the prices of goods/services within the urban population are becoming more expensive and can be a sign of rising inflation.

All variants of the CPI are similar to cost of living indexes as they assess prices in the market based on the goods and services needed to achieve a given standard of living. Different measures of CPI differ from cost of living indexes because they do not account for changes in other facets of standard of living, such as changes in environmental factors.

RELATED TERMS
  1. Inflation

    The rate at which the general level of prices for goods and services ...
  2. Consumer Price Index - CPI

    A measure that examines the weighted average of prices of a basket ...
  3. Halo Effect

    The halo effect is a term used in marketing to explain the bias ...
  4. Deflation

    A general decline in prices, often caused by a reduction in the ...
  5. Owners' Equivalent Rent - OER

    The amount of rent that could be paid to substitute a currently ...
  6. Basket Of Goods

    A relatively fixed set of consumer products and services valued ...
Related Articles
  1. Forex

    The Consumer Price Index

    Find out how this economic measure can help you make key financial decisions.
  2. Economics

    Why The Consumer Price Index Is Controversial

    Find out why economists are torn about how to calculate inflation.
  3. Economics

    What You Should Know About Inflation

    Find out how this figure relates to your investment portfolio.
  4. Options & Futures

    Explaining The World Through Macroeconomic Analysis

    From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone.
  5. Budgeting

    Is Living in Europe Cheaper than in America?

    Learn how living in Europe has financial advantages over living in the United States. Discover the benefits to take advantage of when it makes financial sense.
  6. Economics

    The Delicate Dance of Inflation and GDP

    Investors must understand inflation and gross domestic product, or GDP, well enough to make decisions without becoming buried in data.
  7. Economics

    Industries That Thrive On Recession

    Recessions are not equally hard on everyone. In fact, there are some industries that even flourish amid the adversity.
  8. Economics

    Will Silver Recover in 2016? (SLV, GLD, JJC)

    The end of the silver downtrend is likely to coincide with similar recoveries in gold, iron and copper.
  9. Economics

    Understanding the History of Money

    Money has been a part of human history for at least 3,000 years, evolving from bartering to banknotes.
  10. Economics

    How Interest Rates Affect The U.S. Markets

    When indicators rise more than 3% a year, the Fed raises the federal funds rate to keep inflation under control.
RELATED FAQS
  1. Is my IRA protected in a bankruptcy?

    All types of individual retirement accounts, or IRAs, recognized under the federal tax code enjoy substantial protection ... Read Full Answer >>
  2. Can the consumer price index (CPI) for individual areas be used to compare living ...

    The Consumer Price Index, or CPI, for an individual area cannot be used to compare living costs among different areas of ... Read Full Answer >>
  3. What is the difference between EE and I Bonds?

    Both EE and I bonds are part of the U.S. Treasury's savings bond program, which is designed to offer low-risk investments ... Read Full Answer >>
  4. What is comparative advantage?

    Comparative advantage is an economic law that demonstrates the ways in which protectionism (mercantilism, at the time it ... Read Full Answer >>
  5. How does the Wall Street Journal prime rate forecast work?

    The prime rate forecast is also known as the consensus prime rate, or the average prime rate defined by the Wall Street Journal ... Read Full Answer >>
  6. What's the difference between microeconomics and macroeconomics?

    Microeconomics is generally the study of individuals and business decisions, macroeconomics looks at higher up country and ... Read Full Answer >>
Hot Definitions
  1. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
  2. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
  3. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  4. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
  5. Ponzimonium

    After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium ...
  6. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net ...
Trading Center