Consumer price index (CPI)
Consumer price index (CPI)
This indicator demonstrates the change in the price for a fixed basket of goods and services. Imported goods prices are counted too during the calculation of this index as if they are in the basket too.
This indicator is based on consumer data which demonstrates very well the inflation level in the country. It is analyzed together with the PPI (Producer Price Index). If there are no anomalies in the economy of a country the growth of CPI and PPI leads to the rise of national discount rates and this leads to a rise in the quotation of the currency.
It is also very important to keep an eye on the core of CPI. Its data is released immediately after the index has been released. The core is the CPI without food and energy (electricity, gas, oil and so on) included. A given reading is more valuable if the core follows the changes of the CPI itself. This Index is usually released on about the 15th of every month at 08:30 EST (New York).
