CPI (Consumer Price Index, ดัชนีราคาผู้บริโภค)
CPI is a number that tracks how the prices of everyday goods and services change over time, and it is a common way to measure inflation.
CPI stands for Consumer Price Index. It measures the average change in prices that households pay for a fixed "basket" of goods and services, such as food, housing, transport, clothing and medical care. Statistics agencies in each country publish it, usually every month.
How it relates to inflation
Inflation is the general rise in prices over time. The most common way to show it is the percentage change in CPI compared with the same month one year earlier.
Simple example: Suppose the CPI was 100 a year ago and is 103 today. The change is (103 − 100) ÷ 100 = 0.03, or 3%. So annual inflation is 3%. Something that cost 100 baht a year ago would cost about 103 baht now, on average.
Why traders watch it
CPI is a major economic news release. Central banks often consider inflation when deciding whether to raise, lower or hold interest rates. Because interest rates affect currencies, gold and stocks, prices of EURUSD, XAUUSD and stock indices can move quickly when a CPI report is released, especially if the number is different from what the market expected.
Common beginner mistakes
- Thinking a high CPI always makes a currency rise or fall. The reaction depends on expectations and other conditions.
- Looking only at the headline number. Many reports also show "core CPI", which leaves out food and energy.
- Trading right at the release without a plan. Spreads can widen and prices can jump in seconds.