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

AAA

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.

INVESTOPEDIA EXPLAINS '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.

VIDEO

Loading the player...
RELATED TERMS
  1. Halo Effect

    The halo effect is a term used in marketing to explain the bias ...
  2. Consumer Price Index - CPI

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

    The rate at which the general level of prices for goods and services ...
  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 FAQS
  1. 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 >>
  2. 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 >>
  3. How is the 80-20 rule (Pareto's Principle) used in macroeconomics?

    The 80-20 rule was first used in macroeconomics to describe the distribution of wealth in Italy in the early 20th century, ... Read Full Answer >>
  4. What economic indicators are important to monitor when investing in the insurance ...

    Inflation and interest rates are the best economic indicators to monitor when investing in the insurance sector. Unlike with ... Read Full Answer >>
  5. Which states have the lowest minimum wage?

    As of January, 2015, Georgia and Wyoming have the lowest state minimum wage requirements, according to data from the U.S. ... Read Full Answer >>
  6. How can I use the rule of 70 to estimate a country's GDP growth?

    You could use the rule of 70 to estimate a country's gross domestic product (GDP) growth by dividing 70 by the expected GDP ... Read Full Answer >>
Related Articles
  1. Economics

    Why The Consumer Price Index Is Controversial

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

    What You Should Know About Inflation

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

    Explaining The World Through Macroeconomic Analysis

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

    The Case For Stocks Today

    Last week, U.S. equities advanced with the S&P 500 Index notching new records. Investors are now getting nervous with rate and currency volatility spiking.
  5. Investing

    Why Some Investors Are Tilting Toward TIPS

    Last month’s five-year TIPS auction drew nearly $48 billion in interest, a sign of recent renewed demand for this inflation indexed asset among investors.
  6. Economics

    What is the International Monetary Fund?

    The International Monetary Fund fosters global monetary cooperation and sustainable economic growth.
  7. Economics

    The Pros & Cons of a Trade Deficit

    Is a trade deficit, also known as a current account deficit, beneficial or detrimental to a country's economy?
  8. Economics

    How To Calculate The GDP Of A Country

    We explain how to calculate the GDP of a country using two different approaches.
  9. Economics

    What Is Deflation And How Do Central Banks Fight It?

    The measures taken by central banks seem to be winning the battle against deflation, but it is too early to tell if they have won the war.
  10. Economics

    Why The U.S. Economy Is Ready For Liftoff

    Though the U.S. economy is once again underperforming expectations, as it has for the past five years, the economy is ready for a (Fed) interest rate hike.

You May Also Like

Hot Definitions
  1. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  2. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
  3. Terminal Value - TV

    The value of a bond at maturity, or of an asset at a specified, future valuation date, taking into account factors such as ...
  4. Rule Of 70

    A way to estimate the number of years it takes for a certain variable to double. The rule of 70 states that in order to estimate ...
  5. Risk Premium

    The return in excess of the risk-free rate of return that an investment is expected to yield. An asset's risk premium is ...
  6. Product Line

    A group of related products manufactured by a single company. For example, a cosmetic company's makeup product line might ...
Trading Center