CPI & Inflation Reports

Learn CPI & Inflation Reports — part of our Fundamentals & News series on Trading Bite. Free trading education for Pakistan, India & Gulf traders. Educational use only; not financial advice.

· 3 min read

Consumer Price Index

CPI measures inflation — change in consumer goods/services prices. Central banks watch it when deciding rates.

  • Hot CPI (higher than expected) → may fuel rate-hike expectations → volatile USD, gold, indices.
  • Cool CPI → may ease hike fears → opposite bias possible.
Forecast Below = milder Above = hotter

Gold (XAU) often reacts sharply to US CPI — see Module 9 for instrument-specific notes. Widen stops or reduce size around release.