Fiper | Consumer Price Index

Consumer Price Index

The consumer price index determines the rate of inflation from the point of view of consumers when they buy goods and services. This index is also considered one of the most important indicators that traders monitor and is considered a basic indicator for determining financial inflation and buying trends in society in the United States.
The main goal that the central bank seeks is to achieve price stability, and among the ways to fight inflation, the central bank seeks to raise interest rates to help prices fall. Higher interest rates attract foreign investment, thus increasing the demand for the country's currency
The annual rate of inflation in the US probably slowed to 6.2% in January, the lowest level since October, and compared to 6.5% in December. Core inflation, which excludes volatile food and energy, is expected to have eased to 5.4% from 5.7%, also the lowest since the end of 2021. However, on a seasonally adjusted month-on-month basis, the price index is likely to rise. Consumers rose 0.5% in January, the largest in three months, after an upwardly revised 0.1% increase in December and tracking increases in gasoline and used car prices.

Outlook for today's statement and how it will affect the currency

Expectations indicate that inflation data will decline to a rate of 6.2%.
If the statement is issued below expectations, it will affect the currency in a negative way, but if the statement is issued at a rate higher than expected, it will affect the currency in a positive way.

Core consumer price index

The core consumer price index is derived from the consumer price index and measures the change in the prices of goods and services, excluding food and energy
Core prices are expected to rise by 0.4% for the second month. Although inflation showed signs of peaking at 9.1% in June last year, it remained three times above the Fed's 2% target and still points to a broad advance on the general level of prices, especially services and housing.

Outlook for today's statement and how it will affect the currency

Expectations for the core CPI release today are 0.4%.
If the statement is issued below expectations, it will affect the currency in a negative way, but if the statement is issued at a rate higher than expected, it will affect the currency in a positive way