Consumer Price Index (CPI) is one of the two indicators that economists usually utilize to quantify the rate of inflation, the other being Wholesale Price Index (WPI).
CPI is used to measure the average change in prices — of a fixed basket of goods and services that consumers pay for — over time.
It also happens to be the one index that is most widely used to measure inflation overall.
Various factors — global, regional, and local — affect CPI, and each has a distinct effect.
So, when the price of oil goes up, the price at the petrol pump goes up as well, adding to CPI.
The correlation is direct when oil prices go down.
GCC countries have witnessed a varying degree of change when it comes to CPI.
Here’s a look at which country saw how much change over the previous few years:
