Traders await and worry about the release of the US CPI consumer price index

Traders await and worry about the release of the US CPI consumer price index

admin 13 July 2022

Possibly, the continuation of the market trend will be determined after the release of the US consumer price index.

At 13:30 GMT, the US consumer price index will be released. Therefore, we expect limited fluctuations in the European market.

The Consumer Price Index helps to understand inflation in society, and perhaps this index can be called one of the most important inflation indices. Central banks can usually give permission to increase interest rates if CPI is published higher than the forecast.

Because of the policy to control inflation, the United States Consumer Price Index is published monthly and usually 16 days after the end of the month. If this index is published deferent from the forecasts, it can cause very strong fluctuations in the market.

As you can see in the picture, the U.S. Consumer Price Index has been rising since May 2021, and the statistics show that the U.S. economy is not doing very well.

Image 1

Traders await and worry about the release of the US CPI consumer price index
CPI consumer price index

According to unofficial figures, the U.S. consumer price index rose to an annualized 8.8% in July. Core CPI will decrease by 6.0% in May.

The consumer price index basket includes the following components.

Food, housing, clothing, transportation, medical care, recreation and entertainment, education, and communications.

The remarkable thing about the projected inflation statistics is that we have seen a decrease in energy prices in the United States, particularly gasoline prices, over the last month, which may help the inflation indices in the United States, so there will not be a significant increase.

Long-term inflation expectations have declined significantly, which may indicate that inflation peaked last month.

But will inflation in the U.S. reach 2%? And the more important question is how long it will take before we see 2% inflation in the United States.

The next question is whether the CPI report released last month and the report released today are real or not.

US consumer price index

This is a screenshot of a report, but there are a lot of statistical and typographical errors in it. the question is whether people are smart enough not to believe this report and whether traders usually make their decisions based on these statistics confirm it or not

Leave a Reply

Your email address will not be published.

Related Articles

Are you ready for trading?