Overview of the 2025 CPI Release: In macroeconomic analysis, the year-on-year Consumer Price Index (CPI) of the United States is a key indicator that reflects the annual change in the prices of a basket of goods and services in the U.S. This indicator is significant for understanding the health of the economy, inflationary pressures, and the direction of monetary policy.
CPI (Consumer Price Index), also known as inflation data. Inflation means the devaluation of money, simply understood as 'money is worth less.'
● Excessive inflation will prompt the Federal Reserve to raise interest rates to curb price increases;
● Conversely, low inflation or deflation will prompt the Federal Reserve to lower interest rates to stimulate economic growth.