Source Bureau of Labor Statistics (latest release)

Measures Change in the price of goods and services purchased by consumers, excluding food and energy;

Usual Effect Actual > Forecast = Good for currency; Frequency Released monthly, about 15 days after the month ends;

Food and energy prices account for about a quarter of CPI, but they tend to be very volatile and distort the underlying trend. The FOMC usually pays the most attention to the Core data – so do traders;

Why Traders Care Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate;

Also Called CPI Ex Food and Energy, Underlying CPI;