The index increased by 0.4% in December 2024 on a seasonally adjusted basis compared to a 0.3% increase in November 2024. CPI-U Formula The more common CPI-U calculation entails two primary formulas.

Because the PCE and CPI differ in their formula, weighting, scope and other effects, their results are different. The Federal Reserve prefers to use the PCE price index to measure inflation.

The Consumer Price Index (CPI) is used as a chief barometer of inflation. But what is it and how is it calculated? CNBC Select explains below and recommends some cards that could help put money ...

Tom Werner / Getty Images The Consumer Price Index (CPI) is considered one of the most fundamental and critically important economic indicators used to measure inflation. A CPI is used not only in ...