CPI (Consumer Price Index) measures inflation — it shows how much prices of everyday goods and services (food, fuel, rent, transport, etc.) are rising or falling over time.
📈Why CPI is important
It tells how expensive life is becoming
Central banks (like the US Federal Reserve) use CPI to decide interest rates
Markets move strongly when CPI data is released 📊
CPI impact on financial markets
📈 If CPI is
higher than expected
(high inflation)
Inflation is rising
Central bank may raise interest rates
Stock market → usually falls
Crypto market → usually falls (risk-off)
USD / Dollar → strengthens
Gold → mixed or up
📉 If CPI is
lower than expected
(inflation cooling)
Inflation is under control
Possible rate cuts or no hikes
Stock market → bullish
Crypto market → bullish 🚀
USD → weakens
Gold → often rises
CPI & Trading (very important for you as a trader)
CPI causes high volatility
Big candles, fake breakouts, stop hunts
Best for news traders
Safer approach: wait 5–15 minutes after release, then trade trend
Simple example
Expected CPI: 3.2%
Actual CPI: 3.6% → Market dumps ❌
Actual CPI: 2.9% → Market pumps ✅
