CPI Inflation Rate — Historical Chart
(CPIAUCSL)
About CPI Inflation Rate — Historical Chart
The Consumer Price Index tracks prices across a basket of goods and services for urban consumers. Above 2% YoY triggers Fed concern; above 5% historically forces aggressive rate hikes. The most politically visible inflation measure.
0 OBSERVATIONS
The Consumer Price Index (CPI) measures the monthly change in prices paid by US consumers across a basket of goods and services. It is the most widely cited inflation measure and directly drives Federal Reserve rate decisions — when CPI runs persistently above 2%, the Fed typically tightens monetary policy.
Related Economic Indicators
Frequently Asked Questions
- What is CPI?
- CPI (Consumer Price Index) measures the average price change over time for a fixed basket of goods and services purchased by urban consumers. It is the primary gauge of retail inflation in the United States, published monthly by the Bureau of Labor Statistics.
- What is the Federal Reserve's inflation target?
- The Fed targets 2% annual inflation as measured by the PCE price index, not CPI directly. However, CPI and PCE tend to move together, so CPI above 2-3% typically signals the Fed will consider rate hikes.
- What is core CPI vs headline CPI?
- Headline CPI includes all items. Core CPI excludes food and energy, which are highly volatile. The Fed and most economists focus on core CPI because it better reflects underlying inflationary trends stripped of supply shocks.
- How does CPI affect stock markets?
- Higher-than-expected CPI triggers equity sell-offs because it raises the probability of Fed rate hikes, which increase discount rates and compress equity valuations. Cooler-than-expected CPI tends to rally stocks, particularly long-duration growth stocks.
Economic data comes from the issuing agencies (Federal Reserve, Bureau of Labor Statistics, Bureau of Economic Analysis, Census Bureau and others) and updates on each agency's release schedule. Provided for informational purposes only and does not constitute investment advice.