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General TradingC

Consumer Price Index (CPI)

The Consumer Price Index (CPI) is a widely followed economic indicator that measures the average change in prices paid by consumers for a basket of goods and services over time. It is the primary gauge of inflation and is closely watched by central banks, traders, and policymakers for monetary policy decisions.

Example

When the CPI report showed inflation rising 0.4% month-over-month versus the 0.2% expected, bond yields spiked and equity markets sold off sharply.