CPI- Consumer Price Index is basically the financial term which helps in measurement that use to analyze the average amount of the consumption of products, goods & services. It can be anything, such as traveling to the mart, some food items or medicines, etc. Consumer Price Index is the process of calculating the price fluctuations and variations for every single category of goods and services and analyzes the average ratio of them. Moreover, products and services are analyzed based on the value and demand in the market. Variations in the consumer price index are utilized to have an excess in amount strategy which are directly linked to the amount of spending a life. (Investopedia)
The consumer price index has been used consistently as a statistical measure to study the timely inflation data and deflation process. The major reason behind these criteria is the long term rising in the consumer price index within a small period of dimension which mostly measures the process of deflation and downsizing. Moreover, the study on Statistical labor in United States shows that there are two types of Consumer Price Index, One is known as urban wage-earning and the other CPI is called as Clerk workers. The research found out that the urban wage-earning CPI works more effectively as compare to the urban consumers because it covers approximately 87 percent of the total population sector. (Investopedia)
There are some negative aspects of the consumer price index as well. Sometimes, the covered price index criteria might be limited or up to some level as the expenditure cost are mostly been excluded from the average price and also the expenses of foreign visitors in a particular country. In addition to this, the rural populated sectors are not included at times which turns out into an incorrect ration of consumer price index and also affect the economic sector of the country badly. (Investopedia)
Investopedia, 'Consumer Price Index - CPI.' N.p., 2012. Web. 22 June 2015.