What Is Consumer Price Index (CPI)?

CPI stands for Consumer Price Index. It is the most watched economic indicator in the markets. CPI is calculated/released by the Bureau of Labor Statistics, which is part of the Department of Labor.

What Does CPI Measure?

CPI measures the change in the price of goods and services purchased by consumers excluding investment items such as stocks, bonds, real estates and life insurances. In short, CPI measures the cost of living. CPI is released monthly.

I usually post a lot of updates on my social media pages regarding CPI a few minutes before the release. I love trading these economic events. I have been getting a lot of questions from traders who want to know what CPI is and why is it important.

Why Do We (traders) Care?

Consumer Price Index accounts for the majority of overall inflation. Inflation is important to currency evaluation. There’s also Core CPI which also measures the cost of living but it excludes goods with high volatility such as food and energy. Policy makers use CPI to determine economic policies. Businesses and consumers use CPI to make informed economic decisions.

Which CPI’s do I Trade?

• United States CPI
• United Kingdom CPI
• Canada CPI
• Australia CPI
• New Zealand CPI

Should you wish to learn how CPI affect currencies and stocks and how to trade it, you can WhatsApp +27 78 144 6851 to request a quote for the course and mentorship. Understanding what moves the markets takes away the stresses associated with spending more time in the markets studying charts all day and night. Listen to this podcast episode titled “Spend less time in the markets and live more”

When you understand how the markets work by incorporating fundamentals into your trading, you are able to plan for your trading sessions and that gives you peace of mind and allows you to lead a productive life that is not consumed by charts. Keeping a trading journal also helps a lot with planning.

Thank you so much for reading, please kindly share this post with your trading buddies and help me reach out to as many traders as possible. For notifications on new publication, please subscribe. Below are the remaining dates for the upcoming CPI for the year 2022.