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.
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;
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.
The data will be announced at 16.30 pm.
Author: Necdet Erginsoy
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.