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CHAMPLAIN, NY: IBEW Local Union 2176
CHAMPLIN, MN: UA Local Union 340
CHANNELVIEW, TX: BMWE Local Union 1012
CHAPEL HILL, NC: APWU Local Union 1217
CHAPEL HILL, NC: NALC Local Union 2613
CHAPEL HILL, TN: UTU Local Union 1346
CHAPIN, IL: BMWE Local Union 1599
CHARDON, OH: USW Local Union 557
CHARLEROI, PA: USW Local Union 53
CHARLESTON AFB, SC: AFGE Local Union 1869
CHARLESTON, IL: USW Local Union 8390
CHARLESTON, SC: AFM Local Union 502
CHARLESTON, SC: ATU Local Union 610
CHARLESTON, SC: IATSE Local Union 333
CHARLESTON, SC: IBB Local Union 687
CHARLESTON, SC: IBEW Local Union 776
CHARLESTON, SC: ILA Local Union 1422
CHARLESTON, SC: ILA Local Union 1771
CHARLESTON, SC: IW Local Union 601
CHARLESTON, SC: NAGE Local Union 136
CHARLESTON, SC: SMWIA Local Union 399
CHARLESTON, TN: PACE Local Union 899
CHARLESTON, WV: AFM Local Union 136
CHARLESTON, WV: AFT Local Union 6053
CHARLESTON, WV: APWU Local Union 133
CHARLESTON, WV: CWA Local Union 14210
CHARLESTON, WV: CWA Local Union 2001
CHARLESTON, WV: CWA Local Union 620
CHARLESTON, WV: IATSE Local Union 271
CHARLESTON, WV: IBEW Local Union 466
CHARLESTON, WV: IBEW Local Union 978
CHARLESTON, WV: IUEC Local Union 48
CHARLESTON, WV: IUOE Local Union 132
CHARLESTON, WV: IUPAT Local Union 1195
CHARLESTON, WV: IUPAT Local Union 891
CHARLESTON, WV: IUPAT Local Union 970
CHARLESTON, WV: IW Local Union 301
CHARLESTON, WV: LIUNA Local Union 1353
CHARLESTON, WV: NALC Local Union 531
CHARLESTON, WV: OPCMIA Local Union 887
 

How is the Consumer Price Index (CPI) used?

The Consumer Price Index affects nearly all Americans because of the many ways it is used. Three major uses are:

As an economic indicator: The CPI is the most widely used measure of inflation and is sometimes viewed as an indicator of the effectiveness of government economic policy. It provides information about price changes in the Nation's economy to government, business, labor, and other private citizens, and is used by them as a guide to making economic decisions. In addition, the President, Congress, and the Federal Reserve Board use trends in the CPI to aid in formulating fiscal and monetary policies.

As a deflator of other economic series: The CPI and its components are used to adjust other economic series for price changes and to translate these series into inflation-free dollars. Examples of series adjusted by the CPI include retail sales, hourly and weekly earnings, and components of the national income and product accounts. An interesting example of this is the use of the CPI as a deflator of the value of the consumer's dollar to find its purchasing power. The purchasing power of the consumer's dollar measures the change in the value to the consumer of goods and services that a dollar will buy at different dates. In other words, as prices increase, the purchasing power of the consumer's dollar declines.

As a means of adjusting dollar values: The CPI is often used to adjust consumers' income payments, for example, Social Security; to adjust income eligibility levels for government assistance; and to automatically provide cost-of-living wage adjustments to millions of American workers. The CPI affects the income of about 80 million persons as a result of statutory action: 48.4 million Social Security beneficiaries, about 19.8 million food stamp recipients, and about 4.2 million military and Federal Civil Service retirees and survivors. Changes in the CPI also affect the cost of lunches for 26.5 million children who eat lunch at school, while collective bargaining agreements that tie wages to the CPI cover over 2 million workers. Another example of how dollar values may be adjusted is the use of the CPI to adjust the Federal income tax structure. These adjustments prevent inflation-induced increases in tax rates, an effect called "bracket creep".

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