Observe the most important indicator of the level of inflation is the consumer price index, also known as the CPI, it calculates that the lives of the residents daily consumption goods and services, the average price level, is a 100 compared with the base period value. Period for the price index of more than 100, indicating that the period of the price level as compared with the base period, an increase of less than 100 that declined.
And the employment situation report (non-agricultural) combined with the consumer price index (CPI) has become the financial markets have been carefully studied, another popular economic indicators. It was a cause for concern is obvious: inflation affects everyone, it determines how much consumers to purchase goods and services, so a business the cost of great damage to the individual or corporate investment, which will affect retirees quality of life. Moreover, the inflation outlook will help the establishment of labor contracts and the development of the Government's fiscal policy.
Consumer price index measures the change over time, including more than 200 kinds of goods and services a wide range of retail price changes in the value of the average. This is more than 200 kinds of goods and services are divided into eight major categories. In calculating the consumer price index, each category has a right to be able to demonstrate the importance of the number. These weights are through the thousands of families and individuals in the investigation they purchase products and services determined. Once every two years to amend the weights to make them consistent with people's preferences change.
On the exchange rate impact: the impact of inflation on the dollar was not clear. Normally in a healthy economic expansion, the increase in U.S. dollar interest rates make U.S. dollars more attractive. If interest rates rise mainly from the rise in inflation, it would harm U.S. dollars. A higher rate of inflation undermined the foreign holdings of U.S. dollar value of the investments, the CPI's rise against the U.S. dollar have a negative impact.
What is a Consumer Price Index===>
