The CPI is not the same as the rate of inflation, but it is a closely related concept and an essential tool used to measure inflation. Inflation is the overall increase in the price of goods and services in an economy over a specific period. It represents the erosion of purchasing power and a decrease in the value of money. On the other hand, the CPI is a specific index that quantifies the average change in prices of a predetermined basket of goods and services consumed by households. While the CPI is a widely used measure to track changes in the cost of living and assess the impact of inflation on consumers, it is only one aspect of inflation measurement. Other indices, such as the Producer Price Index (PPI) or Personal Consumption Expenditures Price Index (PCE), focus on different aspects of inflation and may yield slightly different results. Therefore, while the CPI is a critical indicator for understanding inflationary trends, it is essential to consider it in conjunction with other economic indicators for a comprehensive assessment of overall inflation in an economy.