CPI Inflation stands for “Consumer Price Index Inflation”. It is a measure of the average change over time in the prices paid by urban consumers for a basket of goods and services.
The Consumer Price Index (CPI) is calculated by taking a weighted average of the prices of a set of goods and services, which are typically categorized into broad categories such as food and beverages, housing, transportation, and medical care. The CPI measures the change in the cost of this basket of goods and services over time, and it is often used as a gauge of inflation in an economy.
CPI Inflation, therefore, refers to the rate at which the CPI is increasing over time. A higher CPI inflation rate indicates that prices are rising more rapidly, which can have a negative impact on consumers’ purchasing power and the overall economy.
CPI inflation is closely watched by policymakers, economists, and investors, as it can have a significant impact on financial markets and economic policy decisions. The central banks often use CPI inflation as one of the key factors in deciding monetary policy, such as setting interest rates.
Keep in mind CPI data is almost same stronger as NFP which effect mostly on USD vs all rest pairs either GOLD Silver EURUSD ETC.