Inflation and Prices
Economic data to measure changes in prices from consumers’ and producers’ sides
CONSUMER PRICE INDEX (CPI)
Measures the average change in retail prices over time for a basket consisting of more than 200 categories of assorted goods and services.
CPI UP => Interest rates UP => USD UP [Short-run]
CPI UP => Interest rates UP => USD DOWN [Long-run]
PRODUCER PRICE INDEX (PPI)
Measures the change in prices paid by businesses during various stages of productions. PPI does not take into account the price of services.
PPI UP => Interest rates UP => USD UP
PPI rising too fast => USD DOWN