The Consumer Price Index measures inflation, and by extension, the success of the government's economic policies. The CPI covers the average change in prices over time on what people pay for goods and services such as food, energy, commodities, shelter, medical services, and transportation.
The report excludes rural populations, people in mental hospitals, farmers, armed forces. It shows how the prices have changed over a certain period. Usually, it is used to measure inflation, and by the experts in adjusting the values for currencies.
Moreover, it’s used as a base to create and manage fiscal and economic policies. The report is released monthly by the Bureau of Labor Statistics, 16 days after the end of the month.
According to Bloomberg, in April, the CPI was expected to be at 0.7% lower than March's 0.4%. The latest data shows that the index fell to 0.8%, the most significant drop ever recorded.
Analysts expect another decrease, on the same time they are positive that once the country reopens, the CPI will resume increasing.
The markets were unimpressed and stood still, floating at an average of 0.2% for each benchmark.
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Sources: investopedia.com, forexfactory.com, cnbc.com
