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USA: Consumer Price Index release

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Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
The pandemic makes the US market reach record figures.

The Consumer Price Index measures inflation, and by extension, the success of the government's economic policies. The CPI covers the average change in prices over time on what people pay for goods and services such as food, energy, commodities, shelter, medical services, and transportation. 

The report excludes rural populations, people in mental hospitals, farmers, armed forces. It shows how the prices have changed over a certain period. Usually, it is used to measure inflation, and by the experts in adjusting the values for currencies.  

Moreover, it’s used as a base to create and manage fiscal and economic policies. The report is released monthly by the Bureau of Labor Statistics, 16 days after the end of the month.  

According to Bloomberg, in April, the CPI was expected to be at 0.7% lower than March's 0.4%. The latest data shows that the index fell to 0.8%, the most significant drop ever recorded.

Analysts expect another decrease, on the same time they are positive that once the country reopens, the CPI will resume increasing.

The markets were unimpressed and stood still, floating at an average of 0.2% for each benchmark.

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Sources: investopedia.com, forexfactory.com, cnbc.com


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.