When the CPI is rising it means that consumer prices are also rising, and when it falls it means consumer prices are generally falling. In short, a higher CPI indicates higher inflation, while a falling CPI indicates lower inflation, or even deflation. In that respect CPI figures can be very important for forex markets particularly, since the rate of inflation impacts on monetary policy decisions and the interest rates set by central banks. Stock markets typically aren’t moved as much by CPI data, but can be since higher interest rates can cause business activity to slow. In general stock markets prefer a lower CPI that allows consumers to keep spending, and business to continue investing.