CPI Watch is a term that refers to the Consumer Price Index (CPI), an economic indicator used to measure the rate of inflation. CPI measures the average price changes of goods and services purchased by consumers over time.
● More specifically, CPI ●
Measures inflation:
CPI provides an overview of how quickly the prices of goods and services rise or fall.
Reflects the cost of living:
Changes in CPI can reflect changes in the cost of living for the community.
Used for indexing:
CPI is often used to adjust the values of contracts, wages, and social benefits to keep them aligned with price changes.
Can influence monetary policy:
CPI data released periodically can provide input for central banks in setting interest rates and other monetary policies.
Can influence financial markets:
CPI data that is higher than expected can trigger sell-offs in the markets, while inflation that is lower than expected can drive up asset prices.
In other words, CPI Watch is a term used to refer to the monitoring and analysis of CPI data as a crucial indicator in the economy.
