Dictionary of Accounting Terms: general price index
general price index
measure of change in the general level of prices of goods and services. The general indexes gauge the change in the purchasing power of the dollar. Widely used indexes of price change are calculated regularly by U.S. Government agencies. Examples are the Gross National Product Implicit Price Deflator, Consumer Price Index (CPI) for Urban Consumers, and the Wholesale Price Index. For example, the Consumer Price Index reflects the average change in the retail prices of a broad but select "basket" of consumer goods. The Consumer Price Index is required by the accounting profession for use in constant dollar accounting. It is reported monthly by the U.S. Department of Labor.
