US inflation — measured by the CPI — is the most-watched economic number in the world because of the dollar's role. Here is what it is, what moves it and why it affects money everywhere.
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How It's Measured
The Bureau of Labor Statistics tracks the Consumer Price Index — the average change in a basket of goods and services. Core CPI strips out volatile food/energy.
What Drives It
- Energy and shelter costs (housing).
- Wages and demand.
- Supply chains and import prices.
Why It Matters Globally
The Fed's response to US inflation sets global rates, drives the dollar and affects commodity prices, borrowing and remittances worldwide.
Protecting Your Money
Keep savings in inflation-aware products, budget for rising prices and watch the Fed's signals.
FAQ
What is the Fed's target?
Around 2% inflation over time.
Does US inflation affect Nigeria?
Through the dollar, rates and commodity prices — yes, indirectly.
Related: Canada Inflation and US vs Nigeria.