The US CPI refers to the Consumer Price Index (Consumer Price Index), also known as the Consumer Price Index, or CPI for short. Simple and popular to understand, CPI refers to the current price level, that is, inflation. The consumer price index is a macroeconomic indicator that reflects changes in the price levels of consumer goods and services generally purchased by households. It is a relative number that measures the price level of a group of representative consumer goods and services in a specific period of time. It is used to reflect the changes in the price level of consumer goods and services purchased by households. and the coefficient of variation in retail prices of services.
In 2022, the latest U.S. April seasonally adjusted annual rate of CPI was recorded at 8.3%, down from the previous value of 8.50%, but higher than the expected 8.10%. The monthly rate of CPI in the United States recorded a seasonally adjusted 0.30% in April, which was higher than the expected 0.20% and a sharp decrease from the previous value of 1.20%.
In addition, after excluding volatile food and energy prices, the U.S. core CPI rose by 6.2% in April without a seasonally adjusted annual rate, higher than the expected 6%. April core CPI recorded a monthly rate of 0.6%, higher than the expected 0.4%. CNBC commented that inflation has been the biggest threat to the economic recovery, and rising prices at gas stations and grocery stores is a problem, but inflation has spread to real estate, auto sales and many other areas.​​
While the latest report suggests U.S. inflation may have peaked, the figures underscore the magnitude of price increases in the economy, which, combined with strong wage growth, suggest high inflation will persist for some time.
What impact will the rising US CPI have on the market?
After the data was released, spot gold went out of the deep V trend and fell by $15 in the short-term to a minimum of $1834.83. After that, it recovered all the lost ground and rebounded above the 1850 mark.
The U.S. dollar index rose nearly 40 points in a short-term, standing at the 104 mark, and many non-U.S. currencies plummeted. GBP/USD fell 60 points in a short-term, euro-dollar fell 40 points in a short-term; USD/JPY rose 50 points in a short-term, USD/CAD surged over 40 points in a short-term, standing above 1.30. 10-year U.S. bond yields rose in a short-term , a strong breakthrough of the 3% mark. The three major U.S. stock index futures plummeted after the data was released. But these markets have now reversed.
GBP/USD touched 1.24, up 0.63% on the day; USD/CAD continued to fall, falling more than 100 points from its previous high; AUD/USD expanded to 1.50% on the day.
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