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
Annual inflation in the United States is likely to slow to 3.1% in November 2023, the lowest reading in five months, from 3.2% in October. Compared to October, consumer prices are likely to remain unchanged again, led by lower energy costs, specifically gasoline, and used car prices. On the other hand, core inflation is expected to show some stability, with the annual base rate stable at 4% and the monthly rate rising to 0.3% from 0.2%. Inflation is declining this year after peaking at 9.1% in June 2022, the highest level since the early 1980s.

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

Expectations indicate that inflation data will decline to a rate of 3.1%.
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
U.S. core consumer prices, which exclude volatile items such as food and energy, rose 0.2% from the previous month in October of 2023, below market expectations for a 0.3% increase, and slowing from the 0.3% increase in September. The result was in line with recent evidence showing a broad-based slowdown in the US economy, suggesting that the impact of the Fed's aggressive tightening cycle may trickle down to the economy to a greater extent. Consumer prices for services minus energy services slowed (0.3% versus 0.6% in September), and fell for the fifth time in a row for goods excluding food and energy (-0.1% versus -0.4%).

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 statement release

Inflation data will be released at 4:30 pm Mecca time