Does the CPI measure the cost of living?
The CPI frequently is called a cost-of-living index, but it differs from a complete cost-of-living measure. Both the CPI and a cost-of-living index would reflect changes in the prices of goods and services, such as food and clothing, that are directly purchased in the marketplace; but a complete cost-of-living index would go beyond this role to also take into account changes in other governmental or environmental factors that affect consumers’ well-being. For more information, see www.bls.gov/cpi/cpifaq.htm#Question_4.
