CPI for beginners: which number do you actually look at?

FTC Community TeamStaff99 views

Every CPI release comes with several figures: headline inflation, core inflation (excluding food and energy), month-on-month and year-on-year. Beginners often don't know which one the market is reacting to.

CPI for beginners: which number do you actually look at? — risk-reward diagram
A risk-reward ratio of 1 to 2

Which do you watch?

  • headline or core, and why
  • monthly or annual
  • how you found out which figure matters for the dollar
CPI for beginners: which number do you actually look at? — candlestick anatomy diagram
The parts of a candlestick: wick, body, open and close

The CPI guide explains the differences and how to read the release.

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