CPI (Consumer Price Index)

Consumer price index is a monthly economic indicator that tracks the changes in the price of goods and services purchased by consumers, which account for most of the inflation a country experiences. When the CPI decreases it means that there is a steady decrease in the price of goods and services which tends to be favourable for the economy in question. On the contrary, a rising CPI may lead central banks to raise interest rates in order to counter-balance the inflationary pressures.