Glossary
Inflation
Macro
Inflation is the rate at which the general price level rises, most commonly measured by the Consumer Price Index (CPI).
Headline CPI includes food and energy; core CPI strips them out to show the underlying trend. Central banks in developed economies generally target around 2% annual inflation.
Inflation prints move markets because they shift rate expectations. Persistently high inflation supports higher policy rates and a stronger currency in the short run, while eroding real returns on cash and fixed-rate bonds.