Description: The CPI reading provides the most valuable insight to inflationary price pressures on retail goods and services. This index is conducted by the Bureau of Labor Statistics within the Department of Labor. Inflation is dreaded by everyone in the investment world because it can wipe out bond and stock portfolios and ultimately lower the overall standard of living and wealth of individuals and corporations.

Released: The second or third week following the end of the month at 8:30am

Calculation: The CPI index is calculated based upon a basket of goods spanning eight major segments of the economy: Housing, Food and Beverage, Transportation, Medical Care, Apparel, Recreation, Education & Communication, and Other Goods & Services. At the beginning of every calendar year, these eight segments are given a percentage weighting and these weights are adjusted annually as needed.

Key Point: Many indicators try and gauge inflationary pressure, but the CPI is the most relevant indicator because it includes the price of services which is the fastest growing segment of our economy.

Release site: Click here