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Fundamental AnalysisC
CPI
The Consumer Price Index (CPI) measures the weighted average change over time in the prices of a basket of consumer goods and services, including food, housing, transportation, and healthcare. It is the most widely used measure of inflation and is closely watched by central banks, as rising CPI figures often signal potential interest rate hikes. CPI data releases frequently cause significant volatility in forex and equity markets.
Example
“When the US CPI report showed inflation rising to 4.2% year-over-year, exceeding the expected 3.6%, the US dollar strengthened as traders priced in a higher probability of a Federal Reserve rate hike.”