Have you heard the term CPI before and not known what it stood for?
The term CPI is an acronym for the CONSUMER PRICE INDEX.
This index is calculated and published by the U.S. Government. The index is calculated monthly by the US Bureau of Labor Statistics within the Department of Labor (www.bls.gov).
CPI components include the costs of housing, food, transportation, and electricity. This measure of price changes in consumer goods–also known as the “cost of living index” is calculated within various counties and / or regions. These changes in the CPI over time constitute a common measure of inflation.
In the Commercial / Industrial Marketplace, CPI is often used as a reference in the adjustment of or increase in rent for lease renewals or for annual increases during a stated lease term. For those Tenants in the Los Angeles – Southern California area, the Consumer Price Index of ALL URBAN CONSUMERS for the Los Angeles-Riverside-Orange County areas would be the likely index a Landlord might reference.