Investors anticipate CPI and Core Consumer Inflation releases, which will impact precious metals and Federal Reserve policy, as Wall Street eagerly awaits the latest inflation data.

Consumer prices are expected to rise by 0.4% in the next CPI report, the fastest monthly increase since January. This would result in a 3.4% annual increase in consumer costs. Core CPI growth of 0.2% is anticipated, translating into an increase of 4.3% annually.

In contrast to July’s 0.3% rate, the Producer Price Index (PPI) forecasts a 0.4% monthly increase in producer prices. As a result, the annual growth rate rises to 1.3%, exceeding the 0.8% rate for July. Due to rising retail prices, the PPI and CPI are anticipated to move in lockstep.

It is anticipated that the Producer Price Index (PPI), which increased by 0.3% in July, will rise by 0.4% on a monthly basis. On an annual basis, it will surpass July’s 0.8% and reach 1.3%. It is projected that CPI and PPI will move concurrently as producers’ retail store prices increase.

The Federal Reserve’s policy decisions will be influenced by inflation figures, particularly core CPI. Economists and investors believe the Fed will hold off raising interest rates in September, with a 92% likelihood of rates remaining steady after the September 19–20 meeting.

Given the recent 5% decline in the S&P 500, reports of high inflation may fuel investor apprehension about the Federal Reserve boosting interest rates.

Investors can be discouraged by reports of rising inflation because they might be concerned about the Federal Reserve’s anticipated interest rate increase. The values of important growth companies may be impacted by rising inflation, which might, in theory, result in stronger nominal GDP growth but with unanticipated volatility.

The dollar’s direction is anticipated, but precious metals like gold and silver are equally important due to their historical inflation hedge status, suggesting significant fluctuations in their value.

The upcoming week will significantly impact the financial situation, with the Federal Reserve’s actions, stock market swings, and precious metals prices being closely scrutinised. The conclusions of the U.S. central bank’s September 20 meeting will have broad economic ramifications.

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *