What do I need to know about CPI. Important Terminologies.
Here are some of the important aspects of the Consumer Price Index (CPI) that influence the market rates
1. Overall CPI
2. Core CPI
3. Inflation Rate
4. Deflation Rate
5. Month-over-Month (MoM) Changes
6. Year-over-Year (YoY) Changes
7. Shelter Index
8. Energy Index
9. Food Index
10. Medical Care Index
11. Regional Indexes
12. Seasonally Adjusted CPI
13. Cost-of-Living Adjustment (COLA)
14. Weighting of Basket Components
15. Urban Consumer Group (CPI-U)
16. Chained CPI (C-CPI-U)
Conclusion
These factors collectively influence market perceptions and actions, impacting everything from stock prices to bond yields and interest rates. Understanding these elements helps traders anticipate market movements based on CPI reports.
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