US Consumer Price Index

What it measures

Measures the average change over time in prices paid by urban consumers for a market basket of goods and services.

Why markets care

Markets use CPI to update expectations for central-bank policy, real household income and inflation-linked cash flows.

Limitations

• A broad average that may not reflect any household’s basket.
• Shelter measures move with a lag.
• The index level and seasonal factors have different revision properties.

Revision awareness

Not seasonally adjusted annual rate; seasonal monthly series may be revised annually