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![DhandaTheGreat Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::947241945964908544.png) Dhanda The GREAT [@DhandaTheGreat](/creator/twitter/DhandaTheGreat) on x XXX followers
Created: 2025-07-16 11:04:16 UTC

📊 What is CPI?
The Consumer Price Index (CPI) tracks how prices change over time for everyday goods and services 🧺

It's updated monthly 📅 and measures the cost of living 💸

🛒 CPI Includes:
🍎 Food ⚡ Energy 🏠 Housing 👗 Clothing
🚗 Transportation 🏥 Healthcare 🎟️ Entertainment 🎓 Education
But NOT:
❌ Stocks ❌ Bonds ❌ Real Estate ❌ Life Insurance

🧮 How is CPI Calculated?
📦 Track prices for a set basket of goods

🔁 Compare this month vs. last
➗ Divide and ×100 to get the CPI

Formula:
CPI = (Current Basket / Previous Basket) × XXX

Thanks @dhandathegreat for making this easy! 🙌

📈 Why CPI Matters:
It’s the #1 tool to measure inflation 🔥

✅ Used to adjust wages & pensions
✅ Signals to central banks to change interest rates
✅ Impacts prices, policies, and markets

📊 Rising CPI = Possible rate hikes
💵 Stronger currency, but higher borrowing costs
🧠 Core CPI vs Headline CPI:

✔️ Headline CPI = All items
✔️ Core CPI = Excludes volatile food & energy
📌 Core gives a clearer view of inflation trends
🕵️‍♂️ How CPI Data is Collected:

🔍 BLS prices over XXXXXX items monthly
🏪 Visits to stores, rentals, & services
📊 Data is cleaned & adjusted for accuracy
📍 Released: Monthly @ 8:30 AM EST
🗓️ No monthly revisions

⚠️ When Inflation Rises…
💸 Your money buys less
📈 The Fed may raise interest rates
📉 That can cool inflation but impact growth
✅ Ideal CPI growth = 1–2% yearly

🚨 What Affects CPI Most?

🛢️ Energy 🍽️ Food 🚗 Cars 🧳 Airfares
👚 Apparel 🚬 Tobacco
That’s why Core CPI (excluding food & energy) is watched more closely by economists 🧐
📊 How to Trade the CPI Report:
🔹 Compare CPI vs. expectations
🔹 Watch inflation trends
🔹 Focus on Core CPI
🔹 Know the Fed’s X% target
🔹 Combine with data like GDP & unemployment
🔹 Monitor stock, bond, and FX market reactions

🧠 Summary:
✅ CPI = Key inflation tracker
✅ Impacts salaries, savings, and interest rates
✅ Vital for traders, investors, and policy makers
✅ Released monthly by BLS

📚 Learn more:
🔗
🎓 Follow @dhandathegreat – making money talk simple!
💼 #CPI #Inflation #EconomicIndicators #Forex #Investing #InterestRates #MarketNews #FinancialEducation #DhandaTheGreat

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**Related Topics**
[life insurance](/topic/life-insurance)
[insurance](/topic/insurance)
[coins real estate](/topic/coins-real-estate)
[stocks](/topic/stocks)
[coins entertainment](/topic/coins-entertainment)
[coins healthcare](/topic/coins-healthcare)
[coins energy](/topic/coins-energy)
[inflation](/topic/inflation)

[Post Link](https://x.com/DhandaTheGreat/status/1945439335303544902)