FX.co ★ Traders economic calendar. Period: Yesterday

The consumer price index (CPI) is a measure of change in the general level of prices of goods and services bought by households over a specified period of time. It compares a household's cost for a specific basket of finished goods and services with the cost of the same basket during an earlier benchmark period. The consumer price index is used as a measurement of inflation and is a key economic figure. Likely impact: 1) Interest Rates: Larger-than-expected quarterly increase in price or increasing trend is considered inflationary; this will cause bond prices to drop and yields and interest rates to rise. 2) Stock Prices: Higher than expected price inflation is bearish on the stock market as higher inflation will lead to higher interest rates. 3) Exchange Rates: High inflation has an uncertain effect. It would lead to depreciation as higher prices mean lower competitiveness. Conversely, higher inflation causes higher interest rates and a tighter monetary policy that leads to an appreciation.

The Consumer Price Index (CPI) is a significant economic calendar event for Rwanda. It is a key economic indicator that measures the average change in the prices paid by consumers for a fixed basket of goods and services over a specified period of time.

This index is crucial for understanding inflation trends in the country and is used by policymakers to make informed decisions on monetary policy, interest rates, and other economic policies aimed at stabilizing the economy and promoting sustainable growth.

Typically, an increase in CPI indicates a rise in inflation as consumers are paying higher prices for the same goods and services. This can lead to a decrease in purchasing power and potential adjustments in monetary policy. Conversely, a decrease in CPI signals that inflation is slowing, which may result in increased purchasing power as prices fall and consumers are able to buy more with the same amount of money.