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Answer:
CPI measures the change in the price of a basket of goods and services. Every central bank sets a particular inflation target. If the CPI falls below its target, the bank may increase the money supply and/or cut the rate to spur demand. On the other, if prices go above the bank's target, the bank may reduce the money supply and/or hike the rates. Any increase in the money supply and rate reductions are generally bearish for any currency. Conversely, any reduction in the money supply and hikes in the rate are usually bullish for any currency.
