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CPI (Consumer Price Index)

A number the government puts out based on how expensive basic things like milk and bread are com- pared with past prices to show how well or how poorly the economy is doing. If the CPI is high, this indicates inflation, which means you have to spend more dollars to get the same amount of stuff; if it’s low, you guessed it: deflation, which means you have to spend fewer dollars to get the same amount of stuff.

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