Consumer Price Index

This question practices basic macroeconomic knowledge, especially how to interpret common economic indicators that come up in capital markets discussions. A strong answer should explain what CPI is measuring, how it reflects changes in consumer prices across major spending categories, and why it is watched as a gauge of inflation and broader economic conditions. Interviewers ask this because bankers are expected to follow key data releases, understand their implications for rates and markets, and speak clearly about how economic trends affect policy and investor sentiment.