Consumer Price Index (CPI)

The Consumer Price Index tracks the average change in prices consumers pay for a fixed basket of goods and services, making it the most widely followed measure of inflation. Central banks use CPI data heavily when deciding whether to raise, cut, or hold interest rates. A CPI print that beats expectations often strengthens a currency by raising the odds of rate hikes (or delaying cuts); a soft print does the opposite — making CPI day one of the highest-volatility events on the economic calendar.