CPI

Consumer Price Index (CPI) — an index that measures the monthly change in prices paid by consumers. The Bureau of Labor Statistics (BLS) in the United States calculates the index as a weighted average of prices for a basket of goods and services that represents the total consumer spending of households.

A higher CPI compared to the previous reading often indicates that the current government economic policy has been relatively effective over the past month. This suggests that consumers may have greater purchasing power. On the other hand, a lower or declining CPI reading may indicate that the government could potentially ease monetary policy in order to help stimulate the economy.

Now let’s move to the practical part — and the most important one 🔥

Higher-than-expected CPI = bullish for USD 📈 Lower-than-expected CPI = bearish for USD 📉