Track US Core CPI m/m to gauge inflation excluding volatile food and energy, crucial for Fed rate decisions.
Consumer prices are a major contributor to overall inflation, which significantly impacts currency valuation. Rising prices often prompt central banks to increase interest rates to fulfill their mandate of controlling inflation. Although food and energy prices make up roughly a quarter of the Consumer Price Index (CPI), their high volatility can distort the true trend. Consequently, the Federal Open Market Committee and traders typically focus more on Core CPI data.
What it Measures
The change in the prices of goods and services purchased by consumers, excluding food and energy prices.
Usual Effect
When the 'Actual' figure is greater than the 'Forecast', it generally supports a stronger currency.
Source & Frequency
Bureau of Labor Statistics (latest release) - https://www.bls.gov/ • Data is released monthly, approximately 11 days after the end of the reporting month.
How Data is Derived
N/A
Also Known As
CPI Ex Food and Energy, Underlying CPI
Acronym
Consumer Price Index (CPI)