Its highest post-war reading in US history was 14.4% and resulted from the oil shock at the end of the 1970s. What are we talking about? Of course, CPI inflation which measures the change in prices of a specific basket of goods in the economy. Tomorrow at 1:30 p.m. UTC, we will find out what level this indicator hit this time. What might the figures indicate, and how does it concern traders and investors?
What Is The CPI, And Why Is It Significant?
The Consumer Price Index, commonly known as CPI, is a crucial metric that measures the average change over time in the prices paid by consumers for a basket of consumer goods and services. Managed and published by the U.S. Bureau of Labor Statistics, this data acts as the primary gauge of inflation and provides insights into the purchasing power of the US dollar.
CPI – What To Expect?
The CPI data’s unveiling has profound implications for the broader economic landscape. When the Consumer Price Index (CPI) goes up, it means inflation is increasing and things are getting more expensive. This can cause interest rates to rise and affect the whole economy. If the CPI goes down, it might mean that there’s a risk of deflation (prices going down) or that the economy is not doing as well. It can influence the decisions that are made about interest rates and other financial policies.
As of Nov 13, 2023, market analysts project the CPI to register a change of 3.3% YoY and 0.1% MoM. Any deviation from this consensus could usher in substantial volatility in financial markets, including fluctuations in the valuation of equities, bonds, indices, forex pairs, and even cryptocurrencies.
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