Eyes on US CPI figures by Investing.com

© Reuters.

Investing.com – Volatility soared with the expectation that inflation would rise in the US and the Fed’s rate hike earlier than expected. While the interest rate reached the highest level after February 2020, it reached the highest level after November.

February figures will be released from the US today, and the change in the last month is very important for the short-term movement of market expectations. Which is accepted as an indicator in monetary policy in the USA monthly Looking at the change;

Core CPI, which had a weak monthly increase of 0.1% and 0.2% for a long time, increased by 0.6% in July and 0.4% in August after the pandemic. In this period, the effect of the increase in demand with the removal of the restrictions was great. In the last quarter of the year, the increase was weak with 0.2%, as a result of restraints due to the increasing number of cases. Data remained unchanged in the first month of 2021.

Yearly if in change;

As of August 2019, it decreased to 1.2% during the pandemic period, which was in the range of 2.2% – 2.4%. After quarantine, it closed the benchmark year 1.6%, which was 1.6% in July and 1.7% in August. In the first month of 2021, it was 1.4%.

Inflation, weakened by the pandemic, is expected to rise rapidly with incentives, rising costs and demand. Fed officials predict that there will be increases during the year, but that this will not turn into a permanent rise.

In the data set to be announced today, an increase beyond the expectations may cause a revival of interest pricing in the markets, on the other hand, the indicator that will remain low despite this expectation may reduce the activity in the last weeks.

Before the data, while the dollar is following the horizontal motion, the currencies of developing countries have a mixed motion. The TL, which rose close to 2% after the loss at the beginning of the week, traded at a premium of 0.45% against the dollar in the last hour, and is traded at 7.5770.

The data will be announced at 16.30 pm.

Author: Necdet Erginsoy

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