The Consumer Price Index for All Urban Consumers is expected to be released today at 08:30 AM EST. Prior to its release, we have compiled a table with some useful information, for your convenience.
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What is the Consumer Price Index (CPI)?
The Consumer Price Index (CPI) measures the change in prices paid by consumers for goods and services.
The CPI is based on prices of food, clothing, shelter, fuels, transportation, doctors’ and dentists’ services, drugs, and other goods and services that people purchase for day-to-day living. Prices are collected each month in 75 urban areas across the country, from about 6,000 housing units and approximately 22,000 retail establishments (department stores, supermarkets, hospitals, filling stations, and other types of stores and service establishments). All taxes directly associated with the purchase and use of items are included in the index. Additionally, prices of fuels and a few other items are obtained every month in all 75 locations.
Prices of most other commodities and services are collected every month in the three largest geographic areas and every other month in other areas. Prices of most goods and services are obtained by personal visit, telephone call, or web collection by the Bureau’s trained representatives.
Traders’ Cheat Sheet Table
The table below shows you information about past CPI releases, the federal funds rate at the time – which is the main monetary tool that the Fed uses to “fight” inflation, and the S&P 500 Index’s reaction to past CPI releases.
Investors can glean insights into future market movements by understanding the correlation between the changes in CPI and the S&P 500’s reaction. As demonstrated in the chart below, low CPI often indicates that the inflation rate is starting to lose momentum, meaning interest rates could drop and the markets will improve.
| Release Date | CPI | 1 Month Change | 12 Months Change | Fed Funds Rate | S&P 500 1d Reaction | S&P 500 1m Reaction |
|---|---|---|---|---|---|---|
| Nov 10, 2021 | 276.589 | 0.8% | 6.2% | 0.08% | -0.82% | 6.5% |
| Dec 10, 2021 | 277.948 | 0.5% | 6.8% | 0.08% | 0.95% | 1.4% |
| Jan 12, 2022 | 278.802 | 0.3% | 7.0% | 0.08% | 0.28% | 0.3% |
| Feb 10, 2022 | 281.148 | 0.8% | 7.5% | 0.08% | -1.81% | -4.7% |
| Mar 10, 2022 | 283.716 | 0.9% | 7.9% | 0.08% | -0.43% | -5.4% |
| Apr 12, 2022 | 287.504 | 1.3% | 8.5% | 0.2% | -0.34% | 3.2% |
| May 11, 2022 | 289.109 | 0.6% | 8.3% | 0.33% | -1.65% | -10.5% |
| Jun 10, 2022 | 292.296 | 1.1% | 8.6% | 0.77% | -2.91% | -0.9% |
| Jul 13, 2022 | 296.311 | 1.4% | 9.1% | 1.21% | -0.45% | -2.5% |
| Aug 10, 2022 | 296.276 | 0.0% | 8.5% | 1.68% | 2.13% | 10.7% |
| Sep 13, 2022 | 296.171 | 0.0% | 8.3% | 2.33% | -4.32% | -6.6% |
| Oct 13, 2022 | 296.808 | 0.2% | 8.2% | 2.56% | 2.6% | -6.7% |
Release Date – The actual release date of the CPI by the U.S. Bureau of Labor Statistics
CPI – The Consumer Price Index level (in points) that was released
1-Month Change – The % change from the previous month index level to current month
12-Month Change – The % change from the CPI level 12 months ago to current month
Federal Funds Rate – The level of the federal funds rate during the time of the CPI release. The federal funds rate is the interest rate at which depository institutions trade federal funds (balances held at Federal Reserve Banks) with each other overnight.
S&P 500 Reaction – The % change between the closing price of the S&P 500 prior to the CPI release and the closing price of the S&P 500, on the day when the CPI was released.
