U.S. Consumer Price Index
The Consumer Price Index reflects prices of goods and services purchased by typical consumers.
Economic chart data is sourced from official releases. For learning and reference only—not investment advice.
Economic releases—especially major indicators such as GDP—can significantly affect markets. Two angles matter: 1. Leading indicators—before GDP is published, data such as PMI, consumer confidence, and employment often provide early signals about growth and market reaction. 2. Inflation data—inflation trends are closely linked to GDP; if growth comes with high inflation, central banks may adjust policy, creating additional market shifts.
The U.S. Consumer Price Index (CPI) measures price changes in goods and services purchased by urban households. It reflects changes in living costs and is used to track inflation trends.
CPI is published monthly by the Bureau of Labor Statistics (BLS) and covers categories such as food, housing, transportation, healthcare, education, and recreation. A base period (e.g. 1982–1984 = 100) is used to compare price levels over time.
U.S. CPI affects markets mainly in these areas:
1. Inflation expectations: Rising CPI often signals stronger inflation pressure and may prompt investors to reassess asset values.
2. Monetary policy: High CPI may lead the Fed to raise rates; low CPI may support rate cuts to stimulate growth.
3. Equities: Inflation surprises can affect margins and valuations.
4. Bonds: Higher CPI often pushes yields up and bond prices down.
5. Consumer spending: High inflation can reduce real purchasing power and affect growth.