Consumer Price Index (CPI)

Definition: A Bureau of Labor Statistics measure of average price change over time for a basket of goods and services purchased by urban consumers.

Example

A lease links a permitted rent adjustment to a specified CPI series and calculation period.

Keep the distinction clear

CPI is not a direct measure of an individual property's market value or everyone's personal inflation rate. The exact series and lease formula matter.

Related terms

Variable Lease · Index Rate (ARM) · Market Value

Keep studying

Income Approach: NOI, Cap Rate, Property Value, and Cash-on-Cash Return

References: Bureau of Labor Statistics: Consumer Price Index

Pronunciation (US): kun-SOO-mer PRYSS IN-deks; see-pee-EYE (capitals show stress)