Consumer Price Index (CPI)

The CPI measures the average change over time in prices paid by consumers for a fixed basket of goods and services, from groceries to rent to gasoline, and it is the most widely quoted gauge of inflation. It is published monthly by the Bureau of Labor Statistics.

CPI reports are among the highest-volatility economic releases for markets, because they directly inform the Fed's next move on interest rates. A CPI print that comes in hotter than expected can send stocks lower and bond yields higher within minutes, on the assumption the Fed will need to keep rates higher for longer.