# The Consumer Price Index (CPI)

The CPI is a measure of #inflation and how it reflects #consumers.

Reflects a basket of goods and its price over time. 

Two main metrics:
- Total CPI
- Core CPI

Core #CPI excludes food and energy because those prices swing enormously, throwing the numbers.

*Find out how often it comes out in Australia.*

The CPI can be used as a way of determining the future price of goods in contract negotiations.

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**Rise** in **inflation** makes #currency **rise** and #equity **fall**
**Drop** in **inflation** makes #currency **fall** and #equity **rise**

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