Consumer Price Index 11/5/2022

This article includes an explanation of the core consumer price index in the United States and its importance, with a look at previous data and expectations for today's data with its impact on the market and inflation, and what the Fed is waiting for from these data to fight inflation

This indicator is derived from the Consumer Price Index, and measures the change in the prices of goods and services excluding foodstuffs and energy.
The Consumer Price Index measures the change in prices from the point of view of the consumer
It is a primary means of measuring changes in purchasing trends and inflation rates in the United States

The annual US inflation rate is likely to have slowed to 8.1% in April from a 41-year high of 8.5% in March, and the monthly rate is likely to decline to 0.2% from a 16-year high of 1.2%. It would mark the first slowdown in annual inflation in seven months, driven by lower gasoline and used car prices from March to April, and as the underlying effects from last year begin to fade. Annual core inflation that excludes the cost of food and energy will likely cool to 6% from 6.5%, but the monthly rate will rise to 0.4% from 0.2%. Despite the expected slowdown in April, inflation is unlikely to fall to pre-pandemic levels anytime soon and will remain above the Fed's 2% target for a long time as supply disruptions persist and energy and food prices continue to rise.

Estimate for today's data 0.4%

If the data was released above expectations, it will positively affect the currency, as well as the results show the inflation situation in the United States, as a result of this data affected the Fed’s decision to raise interest rates if it was negative, so it accelerates and supports raising interest rates.

The index will be released at 3:30 pm Beirut time

Tags : USD