Recently, various regions have been releasing CPI index data one after another. This seemingly cold economic indicator actually touches every nerve in the investment market. The Consumer Price Index (CPI) is not just a statistical figure; it directly reflects the temperature of the economy and influences the rise and fall of the stock market, foreign exchange market, and commodities.
What exactly does the CPI index measure?
The CPI, or Consumer Price Index, is essentially a macroeconomic barometer tracking changes in the prices of goods and services purchased by households. In simple terms, it weaves the price fluctuations of daily consumables such as food, clothing, housing, and transportation into a curve used to determine whether prices are rising or falling.
The CPI index uses a base year set at 100 points as a starting point, and over time it rises or falls. When the CPI index increases, it indicates that prices are generally rising, and residents' purchasing power is being squeezed; conversely, if the CPI index decreases or turns negative, it