• The CPI measures the average change in prices of a representative basket of goods and services consumed by households residing in a specific area.
• INFLATION is the generalized and sustained increase in the general price level existing in the market over a period of time.
• The CPI is the Consumer Price Index; this index measures the change in the overall prices of goods and services consumed by the population of a country or region.
• The CPI indicates how much the price of the basket of goods consumed by households has increased or decreased. This study is conducted on a set of products (basket) related to food, transport, education, clothing, etc.

The monthly CPI report is expected to provide the general inflation rate, core inflation, accumulated inflation, and monthly inflation.

We would like to remind you that there are several causes of inflation. From this variety, we indicate some of them here; we understand that one of them must occur in an economy:

1. Excess Money Supply

• When central banks print too much money without productive backing, the money loses value.
• Quantity theory of money: more money circulating without an increase in production = inflation.

2. Increased Demand

• If people have more money to spend (due to credit or subsidies) but production does not grow, prices rise.

3. Increase in Production Costs

• Wage increases, rising raw material costs, or high taxes.

4. Imported Inflation

• When a country relies on imports and international prices rise.

5. Inflationary Expectations

• If people expect prices to continue rising, they demand wage increases, which fuels inflation.

City-specific inflation is not easy to compare due to various reasons mentioned above; it depends on the phenomenon occurring in each city.