PSX Clarity
C
Glossary · PSX term

Consumer Price Index (CPI).

The CPI measures the average change in prices of a basket of goods and services households buy.

Definition

Pakistan's CPI, published by the Bureau of Statistics, is the main official inflation gauge and heavily influences SBP interest-rate decisions. Rising CPI usually pushes the policy rate up, affecting markets.

Worked example

If CPI rises from 110 to 121 over a year, that reflects about 10% headline inflation.

Related on PSX Clarity