Consumer Price Index (CPI) – Euro-zone

The Consumer Price Index (CPI) measures the change in price of a representative basket of goods and services. CPI is the key gauge for inflation in the Euro Zone. Inflation, simply put, is a decline in the purchasing power of the Euro, where each Euro buys fewer goods and services due to higher consumer prices.

The index tracks changes in the price of a basket of goods and services that a typical household might purchase. When the CPI is high, it indicates that significant inflationary pressures exist in Euro Zone economies. This puts pressure on the European Central Bank to raise interest rates. When CPI comes out lower than expected the ECB is expected to lower interest rates, or keep them lower, to encourage economic growth. As a rule, the Bank adjusts rates in order to keep Europe consumer price inflation in the 0 to 2 percent range.

Release Schedule: 9:00 (GMT); monthly, with previous month’s data, near the middle of each month

Source of Report: Eurostat/European Central Bank

Web Address: http://www.ecb.int/home/html/index.en.html

Address of Release: http://www.ecb.int/stats/prices/hicp/html/index.en.html