The Consumer Price Index (CPI) is a program conducted by the US Department of Labor/Bureau of Labor Statistics that produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. The important value to note here is the “change” in the cost of those goods and services over the past 12 months.
Many human resource and compensation professionals use the Consumer Price Index to help guide merit increase budgets and determine cost of living increases. CPI values are also used in the implementation of adjustments to formal pay grade structures. The most recent Consumer Price Index Summary, released on July 22, 2014, reported an increase of 2.1% in the cost of “the basket of goods and services” from that of a year ago. You can find the most recent CPI report by following this link: http://www.bls.gov/cpi
Data provided courtesy of WageAccess Compensation and Benefits Survey. Through the Michigan Chamber’s partnership with WageAccess, you can gain access to valuable Compensation, Benefits, Pay Practices and Incentive Pay information and trends in the State of Michigan, and across the United States. Learn more about discounts offered to Chamber members.