Atlas Macro

Economy

CPI (Consumer Price Index)

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them.

Key points

  • Released monthly by the Bureau of Labor Statistics (BLS).
  • Headline CPI includes food and energy; core CPI excludes them.
  • One of the most market-moving data releases; the Fed's own target uses a different measure, PCE.

Example

November 2023 CPI showed inflation of 3.1% over the year, with housing (shelter) costs up 6.5%.

In history

CPI inflation peaked at 9.1% in June 2022, the highest since 1981, and the Fed responded with its fastest series of rate rises since the 1980s.

Related terms