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  1. Home
  2. /Glossary
  3. /Consumer Price Index (CPI)
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macro

Consumer Price Index (CPI)

A measure of average price changes for a basket of consumer goods and services.

Definition

A measure of average price changes for a basket of consumer goods and services. It's the most common inflation metric. When CPI comes in higher than expected, markets often sell off because it means more Fed rate hikes.

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Related Terms

Inflation

The rate at which prices rise and money loses purchasing power.

Federal Reserve (Fed)

The central bank of the United States that sets monetary policy.

Interest Rates

The cost of borrowing money, set by central banks and market forces.

Basis Point

One hundredth of a percentage point (0.

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A corporate strategy of using company treasury funds and debt to buy Bitcoin, popularized by MicroStrategy's Michael Saylor.

CBDC (Central Bank Digital Currency)

A digital form of a country's official currency issued and controlled by its central bank.

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