Consumer Price Index · CPI / Inflation
Definition
The Consumer Price Index measures the average change in prices urban consumers pay for a fixed basket of goods and services. Core CPI strips out volatile food and energy to reveal the underlying trend.
Why investors care
CPI is the headline inflation gauge and one of the most direct drivers of Fed rate decisions, Treasury yields and real wages. A single surprise can reprice the whole curve.
What to watch
Core month-over-month is the number the market trades; “supercore” services (ex-housing) is the Fed’s favorite sub-read.