What does consumer price inflation mean?

Measurement contract

Metric key

metric.inflation

Unit

annual change in consumer prices (%) (percent/year)

Reference period

Annual; country-level measurement; observation year preserved from source

Source indicator

FP.CPI.TOTL.ZG

Alternative terms

inflation, consumer prices, cpi, prices, cost of living

Cross-country comparison

Allowed with same-year alignment and the documented caveats

Method

The IMF International Financial Statistics series is published through WDI. National consumer price indexes use periodic price surveys and country-specific consumption baskets.

Interpretation limits

• A lower inflation rate means prices are rising more slowly; it does not mean prices have fallen.
• Annual inflation differs from a single month’s year-over-year inflation rate.
• Country baskets and expenditure weights differ. Compare price-change rates rather than price levels.
• Differences between rates are measured in percentage points.