{"id":2774,"date":"2016-09-25T18:56:12","date_gmt":"2016-09-25T18:56:12","guid":{"rendered":"https:\/\/learnfxtrading.net\/app\/app\/?p=2774"},"modified":"2019-05-10T18:06:40","modified_gmt":"2019-05-10T16:06:40","slug":"what-is-consumer-price-index","status":"publish","type":"post","link":"https:\/\/learnfxtrading.net\/app\/what-is-consumer-price-index\/","title":{"rendered":"CONSUMER PRICE INDEX (CPI)"},"content":{"rendered":"

What is Consumer Price Index (CPI)?<\/span><\/span><\/h4>\n

I usually \u00a0post a lot of updates\/notifications on my FB wall regarding the CPI and Core CPI few minutes before the release. \u00a0I love trading these economic events. I have been getting a lot of questions from traders who want to know what CPI and Core CPI is. I also get traders who ask if they should pay more attention to the CPI and Core CPI. I am not in a position to decide for anyone, I am however willing to share what I know and why did I opt for the method of trading that I use. You can can learn more about how I trade HERE<\/a>.<\/p>\n

Consumer Price Index (CPI)<\/span><\/p>\n

CPI stands for Consumer Price Index. It is the most watched economic indicator. It is calculated\/released by the Bureau of Labor Statistics, which is part of the Department of Labor.<\/p>\n

What does CPI measure<\/span><\/p>\n

It measures the change in price of goods and services purchased by the consumers excluding investment items such as stocks, bonds, real estates and life insurance. In short, CPI measures the cost of living. The CPI is released monthly.<\/p>\n

Why do we (traders) care<\/span><\/p>\n

The Consumer Price Index accounts for the majority of overall inflation. Inflation is important to currency evaluation.<\/p>\n

What is Core CPI<\/span><\/p>\n

Core CPI excludes the goods with high volatility such as food and energy. Core CPI is also used by the Federal Reserve to make decisions about the U.S Monetary Policy.<\/p>\n

Which CPI’s and Core CPI’s do I follow<\/span><\/p>\n