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The Consumer Price Index (CPI) y/y is an economic indicator that measures the change in the average prices of a basket of goods and services purchased by households over a 12-month period. The CPI y/y is calculated by comparing the current CPI to the CPI from the same period one year ago.
The CPI y/y is important because it provides insight into inflation trends over a longer time period, allowing policymakers and investors to assess the overall direction of prices. Inflation is a key factor in the economy, as it can impact consumer purchasing power, business profitability, and investment returns. A high level of inflation can lead to economic instability and reduced living standards, while low or negative inflation can cause deflationary pressures and stagnation. Policymakers use the CPI y/y to set monetary policy and achieve their inflation targets. The Federal Reserve, for example, has a target inflation rate of 2% per year, and will adjust its policies, such as interest rates or money supply, in order to maintain this target. Investors also use the CPI y/y to assess the risk and return of various investments, such as bonds and stocks, and to make informed decisions about asset allocation.
ADP Employment Change NEXT:5-Feb-2025 |
Average Hourly Earnings NEXT:7-Feb-2025 |
Average Weekly Hours NEXT:7-Feb-2025 |
Budget Balance NEXT:12-Feb-2025 |
Building Permits NEXT:19-Feb-2025 |
Business Inventories / Sales Ratio NEXT:14-Feb-2025 |
Business Inventories m/m NEXT:14-Feb-2025 |
Business Inventories y/y NEXT:14-Feb-2025 |
Business Sales m/m NEXT:14-Feb-2025 |
Business Sales y/y NEXT:14-Feb-2025 |
Capacity Utilization Rate m/m NEXT:14-Feb-2025 |
Capital Account Balance NEXT:20-Mar-2025 |
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