CPI Inflation Monitor (Change YoY & MoM)

📊 CPI Inflation Monitor - Complete Macro Analysis Tool

This indicator provides a comprehensive view of Consumer Price Index (CPI) inflation trends, essential for understanding monetary policy, market conditions, and making informed trading decisions.

🎯 KEY FEATURES:

- Dual Perspective Analysis:
- Year-over-Year (YoY): Histogram bars showing annual inflation rate
- Month-over-Month (MoM): Line overlay showing monthly price changes

- Visual Reference System:
- Dashed line at 2% (Fed's official inflation target for YoY)
- Dotted line at 0.17% (equivalent monthly target for MoM)
- Color-coded bars: Red above target, Green below target

- Real-Time Data Table:
- Current CPI Index value
- YoY inflation rate with color coding
- MoM inflation rate with color coding
- Deviation from Fed target

- Automated Alerts:
- YoY crosses above/below 2% target
- MoM crosses above/below 0.17% target
- Perfect for staying informed without constant monitoring

📈 WHY THIS MATTERS FOR TRADERS:

CPI is the most widely reported inflation metric and directly influences:
- Federal Reserve interest rate decisions
- Bond yields and currency valuations
- Stock market sentiment (especially growth vs. value rotation)
- Cryptocurrency and risk asset performance

Rising inflation (red bars) typically leads to:
→ Higher interest rates → Negative for growth stocks, crypto
→ Stronger USD → Pressure on commodities

Falling inflation (green bars) typically leads to:
→ Rate cut expectations → Positive for growth stocks, crypto
→ Weaker USD → Support for commodities

🔍 HOW TO USE:

1. Strategic Positioning: Use YoY trend (thick bars) for long-term asset allocation
2. Tactical Timing: Use MoM trend (thin line) to identify turning points early
3. Divergence Trading: When MoM falls but YoY remains high, anticipate trend reversal
4. Fed Policy Prediction: Distance from 2% target indicates Fed's likely hawkishness

💡 PRO TIPS:

- Multiple months of MoM above 0.3% = Accelerating inflation → Fed turns hawkish
- MoM turning negative while YoY still elevated = Peak inflation → Position for pivot
- Compare with PPI and PCE indicators for complete inflation picture
- Use alerts to catch important threshold crossings automatically

📊 DATA SOURCE:

Official CPI data from FRED (Federal Reserve Economic Data), updated monthly mid-month when new data releases occur.

🎨 CUSTOMIZATION:

Fully customizable through settings:
- Toggle YoY/MoM displays
- Adjust target levels
- Customize colors for visual preference
- Show/hide absolute CPI values

Perfect for: Macro traders, swing traders, long-term investors, and anyone wanting to understand the inflation environment affecting their portfolio.

Note: This indicator works on any chart timeframe as it loads external monthly economic data.