CPI stands for the Consumer Price Index. In the United States it is published monthly by the Bureau of Labor Statistics (BLS).
CPI measures the average change over time in prices paid by urban consumers for a basket of goods and services — housing, food, energy, transport, medical care and more.
Economists watch CPI because inflation affects purchasing power, wages, and central-bank decisions. When inflation changes, expectations for interest rates can change too, and that is one reason financial markets — including gold — pay close attention.
Key definitions
- Inflation
- A general rise in prices over time, which reduces what a unit of money can buy.
- Headline CPI
- The full index, including food and energy.
- Core CPI
- CPI excluding food and energy, which tend to be volatile.
Key takeaways
- CPI is published monthly by the BLS
- Markets react to the surprise versus expectations, not only the number
- Inflation–gold relationships exist but are not guaranteed