Consumer Price Index


US CPI inflation edges higher to 2.7% in November as expected

October REVIEW

Breaking: US headline CPI rose by 2.6% in October

The Bureau of Labor Statistics (BLS) reported that the headline Consumer Price Index (CPI) rose by 2.6% last month, matching prior forecasts. Meanwhile, core CPI—which excludes the more volatile food and energy categories—recorded an increase of 3.3% over the last twelve months.


September REVIEW


August REVIEW


What is the US CPI?

The Consumer Price Index released by the US Bureau of Labor Statistcs is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The purchase power of USD is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. Generally speaking, a high reading is seen as positive (or bullish) for the USD, while a low reading is seen as negative (or Bearish).

Why it matters to traders?

The US Federal Reserve has a dual mandate of maintaining price stability and maximum employment. According to such mandate, inflation should be at around 2% YoY and has become the weakest pillar of the central bank’s directive ever since the world suffered a pandemic, which extends to these days. Price pressures keep rising amid supply-chain issues and bottlenecks, with the Consumer Price Index (CPI) hanging at multi-decade highs. The Fed has already taken measures to tame inflation and is expected to maintain an aggressive stance in the foreseeable future.


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