Interest rates and inflation

If fundamental analysis has one driver above all others, it is the interest rate. And inflation is what sets the rate’s direction. Whoever understands these two concepts understands most of what happens in the markets.

Inflation

Inflation is a general rise in the price level — that is, a fall in the value of money. It is measured by the consumer price index CPI monthly, and it is among the most important numbers in the entire market.