Consumer Price Index

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
US inflation is likely to fall to 3.6% in September, down slightly from 3.7% in the previous month, indicating that price pressures are easing at a gradual pace. Meanwhile, the core CPI, which excludes volatile food and energy prices, is expected to slow to 4.1% year-on-year, marking its lowest reading since September 2021. On a monthly basis, consumer prices are likely to rise by 0.3%, This is down from a 0.6% increase in August, while the base rate is supposed to remain unchanged at 0.3%. The upcoming CPI report follows the release of a strong September jobs report last week and a higher-than-expected acceleration in producer prices on Wednesday, and could provide further signals for the future path of the Fed's monetary policy.

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 0.3% from the previous month in August 2023, above market expectations for a 0.2% increase and accelerating from the 0.2% advance in the previous two months. Non-energy services costs were sharply higher (0.4%), a key measure of demand-driven inflation that the Fed closely tracks, due to persistent inflation in shelter (0.3%) and transportation services (2%). Meanwhile, the CPI also rose for new vehicles (0.3%), clothing (0.2%), medical care goods (0.6%), and medical care services (0.1%), while prices fell for the third straight month for used cars. Cars and trucks (-1.2%). Core consumer prices rose by 4.3% year-on-year

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

Expectations for today's monthly core CPI report are at 0.3%.
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

Timing of issuance of the statement

Inflation data will be released at 3:30 pm Mecca time