CPI (Consumer Price Index)

Why does it matter?

The Consumer Price Index (CPI) is a crucial economic indicator that measures the average change over time in the prices paid by consumers for a representative basket of goods and services. It reflects how inflation affects the purchasing power of households and is widely used to gauge economic health.

The next release of the Consumer Price Index (CPI) for the United States is scheduled for December 11, 2024, at 8:30 AM ET. This report will cover CPI data for November 2024.

Here are the key reasons why CPI is important for investors:

Interest Rate Decisions: Central banks, such as the Federal Reserve, rely on CPI data to guide monetary policy. A consistently high CPI may prompt rate hikes to curb inflation, while a declining CPI might lead to lower interest rates to stimulate economic growth. These changes can significantly impact stock market performance.

Market Reactions: Investors anticipate how chan…