As a trader, you will ask what CPI means, The full meaning of CPI is the Consumer Price Index.
The Consumer Price Index (CPI) measures the average change over time in the prices consumers pay for a basket of goods and services. It is commonly used to gauge inflation, which reflects the purchasing power of a nation’s currency.
CPI is a key indicator for understanding inflation and its impact on the economy and consumer purchasing power.
The Consumer Price Index (CPI) is typically announced monthly. In the United States, for example, the Bureau of Labor Statistics (BLS) releases the CPI report around the middle of each month. This report provides data for the previous month’s inflation rate.
Other countries may have different schedules, but most also report CPI data every month. Additionally, in some cases, countries might release quarterly CPI figures alongside monthly data, depending on their economic monitoring framework.
The latest Consumer Price Index (CPI) report for August 2024 was released yesterday 11th September. It showed that inflation rose by 0.2% for the month, bringing the annual inflation rate to 2.5%. This marks a continued easing of inflation compared to previous months. However, core inflation which excludes food and energy remained slightly higher due to housing and services costs.
This report is an important indicator for the upcoming Federal Reserve meeting. It suggests a potential 25 basis point interest rate cut, which we will discuss further in our next topic.
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