Consumer Price Index (CPI)
The USVI Consumer Price Index (CPI), is a measure of the change in prices paid by consumers for a basket of goods and services over time in the territory, as calculated by the Division of Economic Research of the Office of Management and Budget (DER/OMB) using standard methodology. CPI is a generally accepted measure of inflation and is used in collective bargaining negotiations, and to adjust rental agreements, and cost of living allowances for social security and pension payments. It is a key variable that influences fiscal and to adjust income, wages, and salaries in contracts of employment. The Government also uses the CPI in formulating fiscal and economic policy. In addition, the CPI is used to keep collective bargaining agreements, rental agreements, and leases. Numerous federal programs including social security, and welfare assistance, uses the CPI to index changes in the cost of living.
Gross Domestic Product (GDP)
Gross domestic product (GDP) is the value of the goods and services produced by the U.S. Virgin Islands (USVI) economy less the value of the goods and services used up in production.