CPI (consumer price index)

Trader's Glossary · Macro

Definition. The US index of consumer goods and services prices, published monthly by the Bureau of Labor Statistics (BLS). One of the most important releases for the markets.

How it works

CPI shows the pace of inflation. The market watches both the headline and the core index (excluding food and energy). Inflation above expectations can shift expectations for Fed interest rates.

Example

It's usually released around the middle of the month at 8:30 AM New York time (14:30 in Warsaw), i.e. before the regular session opens.

What to watch out for

The market reacts to the surprise versus expectations, not to the number itself. At the moment of release, volatility and the risk of slippage rise.

See also

NFP (Non-Farm Payrolls), FOMC (Fed decision), Slippage.

More in Hetman Capital Club

You'll find the full explanation with graphics, examples and exercises in the 🖥️ Order flow atlas space, and its use in the live market in the 🔴 Live Room. Both are available to Club members (in Polish).

Educational content, not investment advice.