How does cpi affect the stock market
Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. Inflation is the natural enemy of the stock and bond market. Around the middle of every month, the Bureau of Labor Statistics issues its Consumer Price Index, known commonly as the CPI. Share prices will fall until the estimated earnings yield increase to a point enough to offset the expected inflation. Nelson, an economics professor at University of Washington, has studied the impact of price inflation, as measured by the consumer price index. As a measure of inflation, this index can help you make key financial decisions. Why is good news on the economy bad news on Wall Street?