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Home > Fundamental Analaysis > Forex Economic Indicators > Consumer Price Index

 


Consumer Price Index (CPI)


While the Producers Price Index assesses the supply, the consumer price index (CPI) is more indicative of the demand.


The purchase prices of goods and services in a country are a good indicator of what the demand for these goods and services are, what the purchasing capacity of the average consumer is and how much the average customer is willing to pay for a fixed basket of these goods and services.


The Consumer Price Index measures the changes in prices of a group of 200 such goods and services.