What is US CPI and how the news relevant with small day traders? The US Consumer Price Index (CPI) is a measure of the average change in prices over time for a basket of goods and services consumed by households. It is widely used as an indicator of inflation and is released by the US Bureau of Labor Statistics (BLS) on a monthly basis. For day traders, the release of the CPI can be an important market-moving event as it provides insight into the health of the economy. If the CPI comes in higher than expected, it may indicate that inflation is rising, which could lead to interest rate hikes by the Federal Reserve. This, in turn, could lead to a decrease in stock prices and an increase in bond prices. On the other hand, if the CPI comes in lower than expected, it may indicate that inflation is slowing down, which could lead to interest rate cuts by the Federal Reserve and potentially boost stock prices. Many day traders closely monitor the release of the CPI and other economic indicators to help inform their trading decisions. It's also worth noting that day traders should also be aware of other reports like PPI, GDP, and FOMC that are also important indicators of the economy and could impact the markets as well.