Tonight, the heartbeat of the market will accelerate as a critical moment approaches - the eyes of the global cryptocurrency community are all focused on the release of the US CPI data at 8:30 tonight. This is not just a series of numbers, but also a barometer of market sentiment, which affects the nerves of every participant.
But don't worry, let's unveil the mystery of CPI first, so that even friends who are new to this field can easily grasp its essence.
Consumer Price Index (CPI), your little detective of the cost of living!
It is like a thermometer of the family economy, telling us how the prices we pay for daily needs - from food on the table to shoes on our feet, from warm homes to convenient travel, and even health protection - have changed over a period of time. When CPI rises, your wallet has to tighten up, because it means that money is not so valuable, and inflation is quietly coming; and when CPI falls, although it sounds good, it may also indicate that the economy is a bit "cold" and the shadow of deflation is shrouded.
CPI, why is it so important?
Because it concerns you and me, affects the wallets of every consumer, and guides the steering wheel of policymakers. The government needs to adjust welfare and wages based on it to ensure that everyone's living standards do not decline due to soaring prices; the central bank cannot do without it. If inflation is high, it may have to raise interest rates to cool down the economy; as for investors, CPI fluctuations directly affect the trend of the stock market, bond market and even the cryptocurrency market. High inflation is often accompanied by violent market fluctuations.
How will the CPI data stir up the situation tonight?
Wall Street experts are holding their breath. They predict that the month-on-month growth of CPI and core CPI in August will remain at 0.2%. Year-on-year, CPI is expected to slow from 2.9% to 2.5%, while core CPI is expected to stabilize at 3.2%, which is one-third of the level two years ago!
But don't forget that the market is always full of variables. With the official release of the data, the fluctuation of emotions is likely to cause prices to rise first and then fall. So tonight, let's witness this data feast together and see how it leads the next trend of the market!
