How to Calculate CPI-U
The Consumer Price Index for Urban Consumers (CPI-U) is a measure that examines the weighted average of prices of a basket of goods and services. Understanding how to calculate CPI-U is crucial for understanding inflation and its impact on the economy.
How to Use This Calculator
- Enter the base year and the price of the item in that year.
- Enter the current year and the price of the same item in that year.
- Click ‘Calculate’.
Formula & Methodology
The CPI-U is calculated using the following formula:
CPI-U = (P1 * 100) / P0
Where P0 is the price in the base year and P1 is the price in the current year.
Real-World Examples
Data & Statistics
| Year | CPI-U |
|---|
Expert Tips
- CPI-U is a measure of inflation, not a measure of the cost of living.
- CPI-U does not account for changes in consumer behavior or quality.
- CPI-U is not a perfect measure of inflation, but it’s the most widely used.
Interactive FAQ
What is the base year for CPI-U?
The base year for CPI-U is 1982-1984.
For more information, see the BLS CPI FAQs and the US Inflation Calculator.