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CPI (Consumer Price Index) (CPI (Consumer Price Index))

Consumer price index is a monthly economic indicator that tracks the changes in the price of goods and services purchased by consumers, which account for most of the inflation a country experiences. When the CPI decreases it means that there is a steady decrease in the price of goods and services which tends to be favourable for the economy in question. On the contrary, a rising CPI may lead central banks to raise interest rates in order to counter-balance the inflationary pressures.