Annual Harmonised Index of Consumer Prices(Change)
European Annual Harmonised Index of Consumer Prices(Change)
The Harmonised Index of Consumer Prices (HICP, same as CPI in UK) tracks changes in the cost of living. When prices are increasing too rapidly, authorities can raise interest rates to increase the cost of borrowing. This can lead to a decline in spending and force retailers to lower prices to entice buyers. For investors, an interest rate increase means higher yields on assets denominated in the currency.