Consumer prices (CPI)

What it measures

The Consumer Price Index tracks the average change over time in the prices consumers pay for a fixed basket of goods and services.

Why it matters

• Measuring inflation and deflation
• Cost-of-living adjustments for wages, pensions and contracts
• Deflating other economic series
• Business planning and investment analysis

Reading the charts

• The index level itself has no meaning; compare changes.
• 12-month inflation is the headline figure the Bank of Canada targets at 2%.