What is the Consumer Price Index (CPI)?

What is the Consumer Price Index(CPI)? The Consumer Price Index (CPI) is a measure of the change in prices paid by consumers for a basket of goods and services. It is one of the most widely followed economic indicators, and it is used by investors to gauge inflation and make investment decisions. How is the CPI calculated? The CPI is calculated by the Bureau of Labor Statistics (BLS). The BLS surveys households across the United States to collect data on the prices they pay for goods and services. This data is then used to create a "basket" of goods and services that represents the spending habits of the average American household. The BLS calculates the CPI by comparing the prices in the basket of goods and services in a given month to the prices in the same basket of goods and services in a base year. The base year is usually 2000. How does the CPI affect investing? The CPI is an important indicator of inflation. When the CPI rises, it means that the cost of living is incre

WTI (Feb) closes above 2%:Geopolitical risks and crude oil inventory changes are key factors

Rising geopolitical risks

Geopolitical risk has risen due to the recent missile attack between Iran and Pakistan, which could increase instability in the Middle East if it escalates, as both countries are unofficial nuclear powers. However, the overall risk of escalation is relatively low given that the attacks were targeted at terrorist strongholds, there was no significant civilian casualties, and trade between the two countries has resumed. Additionally, the conflict between Israel and Palestine continues as the U.S. seeks to stabilize risks in the region.

WTI (Feb) closes above 2%:Geopolitical risks and crude oil inventory changes are key factors


Crude oil inventory changes

According to a report from the US Energy Information Administration (EIA), crude oil inventories in the US declined more than expected, which stimulated oil prices. In particular, extreme cold in North Dakota disrupted crude oil production and pipeline outages caused supply disruptions. These issues are expected to accelerate the decline in crude oil inventories in the near term, which will also affect oil prices.


WTI (February) closes above the 2% mark

The combination of these two factors resulted in WTI (February) closing 2% higher, reflecting geopolitical risk concerns, inventory issues, and expectations of improving demand. Future oil price movements will be determined by a number of factors, including ongoing geopolitical risks, changes in crude oil inventories, and global economic conditions.


As you can see, the oil market is influenced by a variety of internal and external factors, with geopolitical risks and crude oil inventory fluctuations being the main ones that have a significant impact on oil prices. It is important to keep an eye on these factors to understand how the market is trending.