The US Consumer Price Index (CPI) is a report released every year that measures the changes in the price level of a specific basket of goods and services purchased by consumers in the United States. The annual US Consumer Price Index also determines the inflation rate (i.e., the rate of change in prices) from the consumers' perspective when they buy goods and services.

It is used as a key indicator of inflation and a measure of the cost of living. It is calculated by comparing the costs of a specific set of goods and services each year with their costs in the base year. If the Consumer Price Index rises annually, it means that inflation is occurring, which indicates an increase in prices.

While if it decreases, it indicates economic contraction. The Consumer Price Index is one of the most closely watched indicators by currency traders and is considered a fundamental indicator for determining financial inflation and purchasing trends.

The annual CPI is the primary target that the central bank seeks to achieve, which is price stability. Therefore, when the central bank wants to combat financial inflation, its reaction is to raise interest rates to help prices decline. High-interest rates attract foreign investment, thus increasing demand for the country's currency.

The Consumer Price Index (CPI) report in the United States showed.

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