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Consumer price index

The Consumer Price Index determines the inflation rate from the point of view of consumers when they buy goods and services. This index is also considered one of the indicators most monitored by traders and is considered a basic indicator for determining financial inflation and purchasing trends among society in the United States.
The primary goal that the Central Bank seeks is to achieve price stability, and one of the ways to combat inflation is that the Central Bank seeks to raise the interest rate to help prices fall. High interest rates attract foreign investment, thus increasing demand for the country's currency
Annual inflation in the United States is likely to accelerate for the second month in a row to 3.6% in August from 3.2% in July, due to base effects from last year and higher oil prices amid tight supplies. Compared to the previous month, the CPI is expected to rise 0.6%, the largest increase since June 2022, with gasoline prices at gas stations jumping almost 6%. On the other hand, core inflation, which excludes food and energy, is expected to slow for the fifth month in a row to 4.3%, the lowest level since September 2021, from 4.7% in July, due to moderation in shelter and services costs. While the base rate is still about twice above the Fed's 2% target, it is well below the 6.3% rate recorded the previous year. The core CPI is expected to rise by 0.2% in the month, as was the case in July

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

Expectations indicate that inflation data will decline to a rate of 3.6%.
If the statement is issued at a lower rate than 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 CPI is derived from the Consumer Price Index and measures the change in the prices of goods and services excluding food and energy
US core consumer prices, which exclude volatile items such as food and energy, rose 0.2% from the previous month in July 2023, matching June's advance, in line with market expectations. The shelter index (0.4%) was the largest factor in the monthly increase. Among other indicators that rose in July was the auto insurance index, which rose by 2% after rising by 1.7% in the previous month. Education and entertainment indices also rose in July. On the other hand, the airline ticket price index witnessed a noticeable decline, falling by 8.1% for the fourth month in a row, the used cars and trucks index, which fell by 1.3%, and the communications, new vehicles, home furnishings and operations index, which each fell by 0.1. %. On an annual basis, core consumer prices rose 4.7%, compared to a 4.8% increase in June and slightly below market expectations of 4.8%.

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

Expectations for today's monthly core CPI report are at 0.2%.
If the statement is issued at a lower rate than 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.