What's the meaning of Consumer Price Index (CPI)？

The Consumer Price Index (CPI) is a measure of the average change in prices of goods and services over time that consumers buy for day-to-day living. It is used as an indicator of inflation, which is the rate at which the general level of prices for goods and services is rising, and is often used to adjust wages, salaries, pensions, and government benefits for inflation. The CPI is calculated by comparing the cost of a basket of goods and services in a given period to the cost of the same basket in a base period.