U.S. Consumer Price Index

The U.S. Consumer Price Index tracks changes in prices paid by urban consumers and is a major gauge of U.S. inflation pressure.

Economic IndicatorsVery High volatilityU.S. inflation rateheadline CPIconsumer price inflationCPI all items

Full explanation

The U.S. Consumer Price Index measures how the prices paid by urban consumers for a broad basket of goods and services change over time. It is one of the main measures of consumer inflation in the United States. The Bureau of Labor Statistics publishes headline CPI data in both seasonally adjusted and not-seasonally-adjusted forms, including monthly changes and 12-month comparisons; “s.a.” refers to the seasonally adjusted version rather than a separate inflation concept.

Why traders watch it

Traders watch U.S. CPI because it is a key input for Federal Reserve policy expectations, Treasury yields, inflation-linked securities, the U.S. dollar and broad risk sentiment.

Stronger vs weaker outcomes

A higher-than-expected CPI reading may suggest stronger consumer inflation pressure and could lift expectations for tighter or less accommodative monetary policy. A lower-than-expected reading may suggest easing price pressure, although markets usually compare headline CPI with core CPI, wage growth, energy prices and Fed guidance.

Typical volatility

Very High. Headline CPI can be moved by volatile components such as food, energy and shelter, and seasonally adjusted monthly changes can tell a different story from not-seasonally-adjusted annual rates. Traders should distinguish headline CPI from core CPI and index levels from percentage-change measures.

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