The Consumer Price Index (CPI) is a measure tracking changes in the prices of a basket of goods and services that typical Canadian households purchase. Statistics Canada calculates CPI monthly, showing how prices are changing (inflation or deflation). Municipal budget planners use CPI to estimate how much costs will increase, project revenue from fees, and determine appropriate salary increases. Collective agreements often include cost-of-living adjustments tied to CPI. When CPI rises significantly, municipalities face pressure on budgets as costs increase while property tax revenues do not automatically adjust. Understanding CPI helps citizens evaluate whether tax increases are keeping pace with, exceeding, or falling behind inflation.