Learn · Inflation
What Is the Consumer Price Index (CPI)?
The Consumer Price Index measures how the prices of everyday goods and services change over time. It is the most widely followed measure of inflation in the United States.
What CPI measures
Each month, the U.S. Bureau of Labor Statistics (BLS) tracks the prices of a large "basket" of goods and services that households buy, from food and rent to gasoline, clothing, cars and medical care. The CPI compares the cost of that basket over time. When the index rises, prices are going up on average: that's inflation.
The headline number most people quote is the change from a year earlier. Housing costs (shelter) are the largest single part of the index, at roughly a third of the total.
Headline vs. core CPI
Headline CPI includes everything. Core CPI leaves out food and energy, whose prices can jump or fall sharply from month to month because of weather, supply shocks or oil markets. Economists and the Federal Reserve watch core CPI to see the underlying trend.
Why CPI moves markets
Inflation is central to the Federal Reserve's interest rate decisions. When CPI comes in hotter than expected, investors expect the Fed to keep rates higher for longer, which tends to push bond yields up and can weigh on stock prices. A cooler reading can do the opposite. That's why markets often move sharply at 8:30 AM ET on CPI day.
The Fed aims for inflation of about 2% over time. Its official target uses the PCE price index, but CPI comes out earlier each month and is followed just as closely.
CPI Inflation over time
CPI Inflation
Consumer prices, % change from a year ago
Common questions
What does CPI stand for?
CPI stands for Consumer Price Index. It is published monthly by the U.S. Bureau of Labor Statistics (BLS).
When is the next CPI report?
The next CPI report is scheduled for Tuesday, November 10, 2026, at 8:30 AM Eastern Time.
What is the difference between headline and core CPI?
Headline CPI includes all items. Core CPI excludes food and energy, whose prices swing sharply from month to month, so it gives a clearer view of the underlying inflation trend.
Is CPI the Federal Reserve's inflation target?
Not exactly. The Fed's 2% goal is defined using the personal consumption expenditures (PCE) price index, but the Fed and markets watch CPI closely because it is released earlier and moves similarly.
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Source: U.S. Bureau of Labor Statistics via FRED, Federal Reserve Bank of St. Louis. For information only, not investment advice.