US CPI Components

This chart depicts the year-over-year percent change in the components of the Consumer Price Index (CPI) for All Urban Consumers in the U.S., alongside the Wilshire 5000 Total Market Full Cap Index.

1. CPI for All Urban Consumers (Nondurables): This tracks the annual change in prices paid by urban consumers for nondurable goods, which are items typically consumed in the short term.

2. CPI for All Urban Consumers (Durables): This represents the yearly change in prices paid by urban consumers for durable goods, long-lasting items like appliances and furniture.

3. CPI for All Urban Consumers (Services): This reflects the annual change in prices paid by urban consumers for services, including healthcare, education, and professional services.

4. CPI for All Urban Consumers (All Items): This measures the yearly change in the general price level for all goods and services consumed by urban households.

Overlaying these CPI measures with the U.S. market performance as represented by the Wilshire 5000 Index provides insights into how inflationary pressures across different sectors may influence market trends.

Potential Interpretations:

Positive Scenario: If the CPI measures are stable, indicating controlled inflation, and the Wilshire 5000 Index is trending upwards, it suggests a positive market sentiment, potentially benefiting from a stable inflationary environment.

Negative Scenario: If the CPI measures are rapidly rising, indicating accelerating inflation, and the Wilshire 5000 Index is falling, it could suggest that increased inflationary pressures across different consumer sectors are negatively impacting investor confidence and market performance.