Is the US CPI on the Verge of a Decline? Here are the Trends
US CPI UPDATES – The much-awaited Consumer Price Index data is influencing the global tradition and digital asset markets. The Federal Reserve will decide whether to tighten monetary policy further based on the yet to be released CPI data.
How are global markets reacting?
According to data, the STOXX Europe 600 index closed at 0.9% higher Monday. On Tuesday, however, the Asia-Pacific markets showed mixed signals. Japan showed positive sentiments when it announced Kazuo Ueda’s nomination as Bank of Japan governor.
The U.S. stock market futures saw a decline, despite investors looking ahead to important inflation data. Investors remain skeptical about the future due to the large wave of inflation.
The global digital asset market went green just hours before the release of CPI data. Over the past 24 hours, the cumulative market cap has increased by 1.5%. It now stands at $1.01 Trillion. The price of the largest cryptos, such as Bitcoin (BTC), and Ethereum (ETH), registered a marginal recovery during that same period.
CPI Data To Spike
Experts predict that the US CPI data will range from 5.8% to 6.7%, with the median of 6.2%. According to calculations, if the inflation rate is at 5.8%, it would be the 7th consecutive monthly decline. Investors will be motivated to invest in the markets if this positive outcome occurs.
In the meantime, if the inflation rate turns up to 6.7%, it would be the first ever increase since July 2022.
According to the forecast, CPI data will rise 0.4% in January. This could be the biggest increase in the last three month. It will be supported primarily by persistent food inflation and higher gas prices.
According to a Dow Jones poll, the CPI will rise by 0.4% in February compared to the previous month. It is 6.2% higher in January 2022.
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