What Is Consumer Price Index?
The Consumer Price Index (CPI) is a key economic indicator calculated and released by the Bureau of Labor Statistics, a branch of the Department of Labor.
What Does Consumer Price Index measure?
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 insurances. In short, Consumer Price Index measures the cost of living.
Why Do We (traders) Care?
The Consumer Price Index (CPI) accounts for most of overall inflation. Inflation is crucial for evaluating currency. Positive CPI statistics are generally considered favourable for the U.S. dollar, which is likely to strengthen as a result. Conversely, the dollar may weaken if the statistics fall short of expectations. However, the relationship is not as straightforward as it seems. Additionally, the U.S. CPI also influences U.S. stock market performance.
Check out my fundamental analysis course should you wish to learn how to trade CPI and how it affects stocks. Thank you for stopping by. Below are the U.S Consumer Price Index dates 2025.
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