| Definition:
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The Consumer Price Index tracks the change in price of a fixed 'market basket' of goods and services. Consumers can then compare what the 'market basket' currently costs with what it cost one month or one year ago. The index also covers the cost of imported goods.
The 'core' CPI excludes prices paid for food and energy. Analysts tend to focus on the 'core' rate when measuring inflation because food and energy costs can be extremely volatile from month-to-month.
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| Meaning:
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The Consumer Price Index is the most common measure of inflation in the United States.
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| Weight:
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***
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| Source:
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U.S. Department of Labor: Bureau of Labor Statistics
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| Availability:
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Report released 2-3 weeks following the reference month
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| Frequency:
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Monthly
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| Coverage:
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Data is for the previous month (Data for June is released in July)
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| Volatility:
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Moderate
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Impact on the Markets:
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| Interest Rates:
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CPI  =
Interest Rates
CPI  = Interest Rates
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| Fixed-income:
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CPI =
Bond Market
CPI = Bond Market
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| Equities:
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CPI =
Stock Market
CPI = Stock Market
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| Dollar:
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CPI = Uncertain
CPI = Uncertain
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| More Information:
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U.S. Department of Labor: Bureau of Labor Statistics
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