The Consumer Price Index (CPI) in the USA measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It is a key indicator of inflation, reflecting the cost of living and purchasing power. CPI is crucial for economic policy as it influences interest rate decisions by the Federal Reserve and impacts financial markets by affecting investor expectations and bond yields. A higher-than-expected CPI can lead to market volatility, as it may signal rising inflation and potential interest rate hikes.
The Consumer Price Index (CPI) in the USA measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It is a key indicator of inflation, reflecting the cost of living and purchasing power. CPI is crucial for economic policy as i...