Module 5: Fundamental Analysis
CPI (Consumer Price Index)
5 min read
CPI measures changes in the price of a basket of consumer goods and services.
Headline vs core
Headline CPI includes everything. Core CPI excludes volatile food and energy prices and is often watched closely as a guide to underlying inflation.
A CPI release above forecast can strengthen a currency if traders expect tighter policy; below forecast can weaken it. Reactions are not guaranteed.
Key takeaways
- CPI tracks consumer price changes.
- Core CPI strips out food and energy.
- Expect volatility around releases.
Educational content only, not financial advice. Trading forex and CFDs involves significant risk of loss.