Headline CPI

The headline Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by consumers for a basket of goods and services. Headline CPI is a term that traders use to avoid confusion with core CPI, which strips out the volatile prices changes of food and energy.

It is a widely used measure of inflation, and is calculated and published by statistical agencies, such as Statistics Canada and the Bureau of Labor Statistics (BLS) in the United States.

The basket of goods and services used to calculate the CPI is designed to be representative of the consumption patterns of the population. It typically includes items such as food, clothing, housing, transportation, medical care, and recreation. The prices of these items are collected periodically, usually on a monthly basis, and are used to calculate the CPI.

The headline CPI measures the overall change in the price level of the basket of goods and services. It is a broad measure of inflation that captures changes in the prices of all goods and services consumed by households. It is considered as the most widely used measure of inflation, as it gives a general idea of the overall trend of the price level.

The headline CPI is used by central banks, such as the Bank of England, to make monetary policy decisions, and it is also used by governments and businesses to make economic decisions. It is also used by households as a benchmark for their spending and investment decisions.