What Is Inflation (CPI) Data?

The Consumer Price Index (CPI) tracks the average change in prices households pay for a basket of goods and services. In the US it is published monthly by the Bureau of Labor Statistics. Headline CPI includes food and energy; core CPI excludes them to show the underlying trend.

Why it matters for investors

Hotter-than-expected CPI usually pushes bond yields up because traders expect the Federal Reserve to keep rates higher for longer. Higher yields tend to weigh on growth stocks. A cooler reading usually does the opposite.

Common questions

What is the difference between headline and core CPI?

Headline CPI includes every item in the basket. Core CPI removes food and energy, which swing a lot, so it shows the more persistent inflation trend.

How is year-over-year inflation calculated?

It compares the index level for a month with the same calendar month a year earlier, expressed as a percentage change.