Inflation Report

Definition ∞ An inflation report provides official data on the rate at which prices for goods and services are increasing. These reports, typically issued by government statistical agencies, include metrics such as the Consumer Price Index (CPI) or Producer Price Index (PPI). They measure the purchasing power of currency and are critical indicators of economic health. Central banks and policymakers closely review these reports to inform monetary policy decisions.
Context ∞ Inflation reports heavily influence traditional financial markets and increasingly impact digital asset valuations, as investors consider their implications for interest rates and economic stability. High inflation can prompt central banks to tighten monetary policy, which often creates downward pressure on risk assets like cryptocurrencies. The market consistently scrutinizes these reports for cues on future economic trends and asset performance.