Core CPI

Who: Department of Labor

When: Approximately 13th day of each month for prior month

What: CPI measures the price of a predetermined set of goods and services purchased by urban consumers (80% of the population). CPI is the most widely cited inflation indicator and is used to calculate cost of living adjustments for government programs. CPI tracks prices of goods in several main categories including food and beverage, energy, housing, apparel, transportation, medical, education and others. Excluding food and energy, which are the more volatile components, gives what is commonly referred to as the "core rate."

Why: CPI is used to gauge changes in inflation and markets tend to be extremely sensitive to unexpected changes to the reported numbers. As inflation and expectations of future inflation rates change, the markets adjust interest rates to reflect those changes. The effect of these changes is seen across all markets, equities, bonds and mortgage backed securities. As a general rule, higher inflation is negative for bond markets.