Will it plummet tonight!
Or will it soar?
Where there are cryptocurrencies around the world.
They are all posting the importance of the CPI data at 8:30 tonight.
But many fans probably don’t even know what CPI is and what role it plays.
Here is a brief explanation!
Consumer Price Index (CPI):
It is one of the important economic indicators that measures the average change in the prices consumers pay for a range of goods and services over a period of time.
It reflects the cost of living for households, covering food, clothing, housing, transportation and health care.
A rise in CPI indicates rising prices and a decline in the purchasing power of money, that is, inflation;
A fall in CPI may mean deflation and falling prices.
CPI is crucial to consumers, policymakers, businesses and investors.
The government uses CPI data to adjust income payments to keep pace with inflation;
Central banks make interest rate decisions based on this, and inflation that rises too quickly may raise interest rates to cool the economy;
For investors, CPI affects market trends, and high inflation triggers volatility, affecting corporate profits, bond yields and stock markets.
In daily life, CPI directly affects wallets. If prices rise faster than wages, families may have trouble maintaining their standard of living.
When companies face rising CPI, their costs rise, which are often passed on to consumers.
Understanding CPI can help individuals make better financial decisions, such as adjusting budgets or arranging large purchases when prices are stable.
At 20:30 Beijing time on Wednesday, the U.S. Bureau of Labor Statistics will release the August CPI data. Currently, Wall Street generally expects:
The U.S. CPI and core CPI both rose by 0.2% month-on-month in August, both unchanged from the previous month.
In terms of year-on-year growth, the market expects the CPI to grow by 2.5% in August, a slowdown from the previous value of 2.9%, and the core CPI to remain unchanged from the previous value of 3.2%, only one-third of two years ago.
In my opinion, it will rise first and then fall.
