European Union Consumer Price Index (CPI)

EU Consumer Price Index (CPI) shows a change in prices for a fixed basket of goods and services from the consumer perspective, in the reported month compared to the previous month. This is an important indicator of inflation in the European Union.

Price changes are calculated using a representative sample of goods and services, i.e. the so-called "consumer basket". The sample aims to cover the main household consumption items, including food and beverages, personal care products, periodicals, utility costs, health care, education and entertainment costs, among others. Most of these products and services are purchased frequently or daily.

The CPI is used in monetary policy decision making, wage and social benefits indexing, and as a tool for calculating changes in consumption and in living standards. The CPI is calculated separately for each state in the euro area. Then the obtained data is compiled to the Harmonized Index of Consumer Price (HICP) according to the approved methodology.

If other factors (such as wages) remain unchanged, CPI and inflationary growth mean a decrease in the purchasing power of the population. CPI growth against insufficient inflation is seen as positive for the euro quotes.