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Consumer Price Index. Measures how much prices are rising (inflation).
Why It Matters
CPI is the inflation number that moves markets. A higher-than-expected CPI means the Fed might raise rates, which usually tanks stocks. The monthly CPI release is one of the most market-moving events on the economic calendar.
Key Points
- CPI measures a basket of goods: food, housing, gas, healthcare, etc.
- Core CPI excludes food and energy - it's what the Fed watches most closely
- The Fed targets 2% annual inflation - CPI tells us if we're above or below
Related Terms
Common Questions
Consumer Price Index. Measures how much prices are rising (inflation). CPI is the inflation number that moves markets. A higher-than-expected CPI means the Fed might raise rates, which usually tanks stocks.
CPI is the inflation number that moves markets. A higher-than-expected CPI means the Fed might raise rates, which usually tanks stocks. The monthly CPI release is one of the most market-moving events on the economic calendar.
CPI measures a basket of goods: food, housing, gas, healthcare, etc.
Core CPI excludes food and energy - it's what the Fed watches most closely
The Fed targets 2% annual inflation - CPI tells us if we're above or below