The Consumer Price Index (CPI) is often used as a standard way to follow inflation. It measures the average change in prices from one year to the next. When the CPI increases, it’s a sign that overall living costs are on the rise. In May, the CPI for all items increased 5 percent before seasonal adjustment, according to the Bureau of Labor Statistics (pdf).
Besides the CPI, “real inflation can be seen at the grocery store, car lots, home prices, and just about everywhere,” says Denny Artache, certified Social Security claiming strategist and financial adviser with Peak Brokerage Services, LLC.
