Monthly statistic, computed by the United States Department of Labor, which measures the price changes of various goods and services, such as gasoline, food, or apartment rent, paid for by a typical American family. Large increases in the index indicate inflation, whereas small changes in the index, or even decreases, may suggest the economy is in recession. The prices of hundreds of everyday items, randomly collected across the country are used to calculate the CPI, which is commonly used as a basis for calculating cost of living adjustments for workers and retirees.