• The United States government will be releasing the Consumer Price Index (CPI) excluding food and energy (core CPI) numbers on Thursday, January 12.
• The CPI numbers will play a key role in the Federal Reserve’s decision on whether to raise interest rates further.
• Estimates show that inflation rates have decreased from their summer 2022 peak, but are still at a painful level.
The United States government will be releasing the Consumer Price Index (CPI) excluding food and energy (core CPI) numbers on Thursday, January 12. This data will be used to determine whether the US Federal Reserve will continue its current policy of raising interest rates.
The CPI is an important metric that measures the change in prices of goods and services purchased by households. These figures are used by the Federal Reserve to decide how to adjust the money supply in order to maintain economic stability. The CPI numbers for December are expected to be released this Thursday, and the estimates show that inflation rates have decreased from their summer 2022 peak, but are still at a painful level.
The Federal Reserve’s decision to raise interest rates is based on the inflation rate and the US economic outlook. In the summer of 2022, the interest rate was raised to 4.5%, and it is expected that the Federal Reserve will raise the rate again if the CPI numbers show that inflation is still above 3%.
Analysts predict that the upcoming CPI numbers will have a significant impact on the markets. If the numbers show that inflation is still high, then the Federal Reserve is likely to continue raising interest rates, which will have a negative effect on the stock market. On the other hand, if the numbers show that inflation is decreasing, then the Federal Reserve is likely to keep the interest rate at its current level, which could have a positive effect on the stock market.
It is important to note that the CPI numbers are only a snapshot of the current economic climate. The Federal Reserve also takes into account other economic factors when making its decisions, such as unemployment levels, GDP growth, and wage growth. The Fed will also consider how other countries’ economies are faring before making its decision.
The CPI numbers for December will be released on Thursday, January 12, and the markets will be watching closely to see what effect they will have on the US economy. Analysts believe that the Federal Reserve will take into account the CPI numbers when deciding whether or not to raise interest rates, and the markets will be reacting accordingly. Investors should pay close attention to the CPI numbers and be prepared to adjust their portfolios accordingly.