What Is the Consumer Price Index (CPI)?
The consumer price index (CPI) is an economic indicator that tracks the average change in prices of certain goods and services.
CPI is the primary measure of inflation, indicating how much prices have increased over a given period. Policymakers, businesses, and consumers use it to make more informed decisions.
By keeping an eye on CPI trends, investors can better understand the economic environment and make more informed decisions regarding their investments.
What Is Deflation?
Deflation describes a drop in prices, which can increase the purchasing power of your money. It may result in more affordable goods and services and allow for more savings.
While it’s often considered a good thing, persistent deflation can negatively affect the economy. If not managed well, deflation can increase unemployment and slow down economic growth.
