Glossary
CPI (Consumer Price Index)
A monthly US inflation measure that tracks the average change in prices urban consumers pay for a basket of goods and services.
The Consumer Price Index is published each month by the US Bureau of Labor Statistics. It is reported as a change from the previous month and from the same month a year earlier; the year-over-year figure is the one most headlines quote as “inflation”.
Alongside the headline number, the report includes core CPI, which leaves out food and energy because those prices swing the most. Many analysts treat core as the clearer view of the underlying trend.
Markets react to CPI mainly through interest-rate expectations. What tends to move prices is the gap between the reported figure and the consensus forecast, not the figure alone.
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