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23 pips, US30 147 points and BTC 1279 points potential profit in 32 seconds on 12 February 2025, analysis on futures forex fx low latency news trading USDJPY on US Consumer Price Index (CPI)

According to our analysis USDJPY moved 23 pips, US30 moved 147 points and Bitcoin (BTC) moved 1279 points on US BLS Consumer Price Index (CPI) data on 12 February 2025.

USDJPY (23 pips)

US30 (147 points)

Bitcoin BTC (1279 points)

Charts are exported from JForex (Dukascopy).


CPI Report Shakes Markets: USD/JPY Gains, US30 Drops, BTC Dips

The January 2025 Consumer Price Index (CPI) report released by the Bureau of Labor Statistics showed a higher-than-expected inflation increase of 0.5% month-over-month, bringing the annual CPI to 3.0%. This data immediately sent ripples through the financial markets, impacting major asset classes, including forex, equities, and crypto.

Key CPI Highlights:

  • Headline CPI: +0.5% (MoM), +3.0% (YoY)

  • Core CPI (Ex-Food & Energy): +0.4% (MoM), +3.3% (YoY)

  • Shelter Costs: +0.4% MoM, a major driver of inflation

  • Energy Index: +1.1% MoM, fueled by a 1.8% increase in gasoline prices

  • Food Index: +0.4% MoM, with food-at-home prices up 0.5%

Market Reaction:

Forex – USD/JPY Rises 23 Pips

The U.S. dollar strengthened against the Japanese yen, with USD/JPY climbing 23 pips post-release. This move reflects increased expectations that the Federal Reserve may need to maintain higher interest rates for longer to combat inflation. The resilience of core CPI above 3.0% further solidifies the Fed’s hawkish stance, making USD more attractive compared to JPY, which remains under the Bank of Japan’s ultra-loose policy.

Equities – US30 Drops 147 Points

Wall Street reacted negatively to the inflation data, with the Dow Jones Industrial Average (US30) falling 147 points. Investors are concerned that persistent inflation may delay any potential Fed rate cuts, dampening risk appetite. Additionally, rising costs for shelter and transportation services indicate that consumer spending power could take a hit, affecting corporate earnings.

Crypto – Bitcoin Drops 1,279 Points

Bitcoin (BTC) saw a sharp decline of 1,279 points following the CPI release, reflecting a risk-off sentiment in the broader market. Higher-than-expected inflation led to speculation that Fed policy will remain tight, reducing liquidity for riskier assets like crypto. BTC’s drop also aligns with a broader sell-off in tech and growth stocks, which tend to be more sensitive to interest rate outlooks.

Final Thoughts

Traders should brace for continued volatility as inflation concerns linger. The next major catalyst will be the Fed’s response in upcoming meetings and market reactions to any further economic data releases. Stay alert to potential breakout moves in USD/JPY, US30, and BTC as inflation trends develop.

Disclaimer: This blog post is for informational purposes only and should not be construed as financial advice. Always conduct thorough research and consider seeking advice from a financial professional before making any investment decisions.

Source: https://www.bls.gov/news.release/cpi.nr0.htm


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25 pips, US30 90 points and BTC 1018 points potential profit in 40 seconds on 15 January 2025, analysis on futures forex fx low latency news trading USDJPY, EURUSD on US Consumer Price Index (CPI)

According to our analysis USDJPY and EURUSD moved 54 pips, US30 moved 90 points and Bitcoin (BTC) moved 1018 points on US BLS Consumer Price Index (CPI) data on 15 January 2025.

USDJPY (18 pips)

EURUSD (7 pips)

US30 (90 points)

Bitcoin BTC (1018 points)

Charts are exported from JForex (Dukascopy).


December 2024 CPI Report: Core Inflation Falls Short of Expectations – What It Means for Markets

The U.S. Bureau of Labor Statistics released the Consumer Price Index (CPI) for December 2024 on January 15, 2025. While headline inflation was in line with expectations, core inflation (excluding food and energy) came in slightly cooler than anticipated. The headline CPI rose 0.4% month-over-month and 2.9% year-over-year, meeting forecasts. However, core CPI increased by 0.2% month-over-month (vs. 0.3% expected) and 3.2% year-over-year (vs. 3.3% expected). Here’s a breakdown of the report and its implications for traders.

Headline Takeaways

  1. Headline Inflation: The all-items index rose 0.4% month-over-month and 2.9% year-over-year, reflecting steady inflationary pressures in energy and food prices.

  2. Core Inflation Misses: Core CPI rose 0.2% month-over-month, below the forecasted 0.3%. Year-over-year, core inflation moderated to 3.2%, also below the expected 3.3%.

  3. Energy Drives the Headline: Energy prices surged 2.6% month-over-month, with gasoline prices jumping 4.4%, making energy a key driver of the overall CPI increase.

  4. Food Inflation Holds Steady: Food prices rose 0.3% month-over-month, with both food at home and food away from home contributing equally to the increase.

Market Implications of Core CPI Miss

Cooling Core Inflation Trends

  • The 0.2% month-over-month rise in core CPI marked a modest cooling from the expected 0.3%. Year-over-year, the 3.2% core inflation rate signals gradual easing in underlying price pressures.

  • Market Impact: A softer-than-expected core reading could prompt markets to reassess the Federal Reserve’s policy stance, increasing the likelihood of a pause or easing cycle sooner than previously anticipated.

Energy Price Surge Shifts Focus

  • Energy prices rose significantly, with a 4.4% increase in gasoline prices dominating the report. However, on a year-over-year basis, energy remains a deflationary factor, down 0.5%.

  • Market Impact: Energy-driven headline inflation may not alter the Fed’s trajectory if core inflation continues to cool, but it could buoy commodity markets and inflation-sensitive sectors.

Sector Breakdown

Shelter Remains Elevated

  • Shelter costs rose 0.3% month-over-month and 4.6% year-over-year. Shelter remains the largest contributor to core inflation but showed signs of stabilization.

  • Implications for Traders: Persistent shelter inflation could limit the Fed’s flexibility, supporting higher-for-longer interest rate expectations.

Food Prices Steady but Mixed

  • Food at home (+0.3%) and food away from home (+0.3%) rose in tandem. Cereals and bakery products saw a sharp rise (+1.2%), while nonalcoholic beverages (-0.4%) and fruits and vegetables (-0.1%) declined.

  • Market Impact: Stable food inflation supports consumer purchasing power, benefiting consumer discretionary stocks.

Transportation and Autos Drive Core

  • Used cars and trucks rebounded with a 1.2% increase, while new vehicles rose 0.5%. Airline fares surged 3.9%.

  • Implications for Traders: Rising auto and transportation costs could impact consumer sentiment and provide short-term tailwinds to related industries.

Fed Policy Implications

With core CPI coming in below expectations, markets may interpret the data as a sign that inflation is moderating toward the Federal Reserve’s target. While headline inflation remains steady, the softer core reading could shift the Fed’s tone toward a more dovish stance, especially if cooling trends persist.

Trading Opportunities

  1. Equities: Growth stocks and rate-sensitive sectors may gain on expectations of a dovish Fed. Defensive sectors may face headwinds if inflation pressures ease.

  2. Bonds: Treasury yields could decline, particularly on the shorter end of the curve, as markets price in reduced rate hike probabilities.

  3. Commodities: Energy markets may rally due to the sharp increase in gasoline and natural gas prices. Gold could see gains if inflation expectations moderate.

  4. Forex: The U.S. Dollar Index (DXY) might weaken if traders anticipate a softer Fed policy path.

Disclaimer: This blog post is for informational purposes only and should not be construed as financial advice. Always conduct thorough research and consider seeking advice from a financial professional before making any investment decisions.

Source: https://www.bls.gov/news.release/cpi.nr0.htm


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28 pips potential profit in 222 seconds on 2 January 2025, analysis on futures forex fx news trading USDJPY and EURUSD on US Jobless Claims data

According to our analysis USDJPY and EURUSD moved 28 pips on US Jobless Claims data on 2 January 2025.

USDJPY (28 pips)

Charts are exported from JForex (Dukascopy).


Weekly Unemployment Insurance Claims: Key Takeaways from the Latest Report

The latest release from the U.S. Department of Labor on unemployment insurance claims, which was embargoed until 8:30 a.m. (Eastern) on January 2, 2025, sheds light on the current labor market conditions as the year begins. The data provides an overview of initial and continued claims, reflecting overall economic trends and providing an indicator of job market stability.

Initial Claims: A Positive Trend

For the week ending December 28, the seasonally adjusted initial claims for unemployment insurance dropped to 211,000, marking a decrease of 9,000 from the previous week’s revised figure of 220,000. This decline in initial claims indicates a promising trend for job seekers and signals a reduction in layoffs and firings.

It is worth noting that the previous week’s claims were adjusted upward by 1,000 from the originally reported 219,000. Despite this revision, the overall decrease in new claims suggests resilience in the labor market.

4-Week Moving Average: Stability in the Trend

The 4-week moving average, a more stable indicator that smooths out weekly volatility, decreased by 3,500 to 223,250. This figure is down from the revised average of 226,750 from the previous week. The modest but steady downward trend in the moving average indicates that the labor market has maintained relative stability over the past month.

Insured Unemployment Rate: Slight Decline

The advance seasonally adjusted insured unemployment rate for the week ending December 21 fell by 0.1 percentage point to 1.2%. This insured unemployment rate measures the proportion of the labor force currently receiving unemployment benefits and is a key indicator of sustained employment levels.

Continued Claims: Encouraging Decrease

The advance number of seasonally adjusted insured unemployment claims—often referred to as "continued claims"—for the week ending December 21 was 1,844,000, reflecting a decrease of 52,000 from the revised figure of 1,896,000 for the previous week. This decrease in continued claims is another positive sign of improving employment prospects.

The previous week’s continued claims were revised downward by 14,000 from 1,910,000 to 1,896,000. Such downward revisions can reflect better-than-expected retention in the workforce and highlight corrections based on updated data.

4-Week Moving Average of Continued Claims

Similarly, the 4-week moving average of continued claims decreased by 6,750 to 1,870,750. This represents a slight improvement from the revised average of 1,877,500 from the previous week. The consistent downward trend over recent weeks further underscores the broader labor market’s ability to absorb job losses and maintain employment growth.

What This Means for the Economy

The latest data on unemployment claims indicates that the job market remains strong despite economic uncertainties. Declining initial and continued claims suggest that layoffs are minimal and that workers who lose their jobs are able to find new employment relatively quickly.

This trend aligns with broader economic indicators that suggest continued growth in the labor market as 2025 begins. While external factors such as inflation and global economic conditions may pose risks, the sustained decrease in unemployment claims points to a healthy job market that supports economic resilience.

Looking Ahead

As the economy moves into the new year, economists and policymakers will closely monitor labor market data to gauge the effects of monetary policies and broader economic shifts. For job seekers, these figures provide a hopeful outlook, indicating that employment opportunities remain abundant.

The next report on unemployment claims will provide further insight into whether this trend continues or shifts. For now, the data shows a labor market that continues to stabilize and strengthen after a year of navigating economic uncertainties.

Stay tuned for future updates as we track key employment trends and what they mean for the broader economy.

Sources: https://www.dol.gov/ui/data.pdf


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31 pips potential profit in 43 seconds on 14 November 2024, analysis on futures forex fx low latency news trading USDJPY and EURUSD on US BLS Producer Price Index (PPI) data

According to our analysis USDJPY and EURUSD moved 31 pips on US BLS Producer Price Index (PPI) data on 14 November 2024.

USDJPY (20 pips)

EURUSD (11 pips)

Charts are exported from JForex (Dukascopy).


October 2024 Producer Price Index Report: Key Takeaways and Insights

The U.S. Bureau of Labor Statistics (BLS) recently released its Producer Price Index (PPI) report for October 2024, highlighting an incremental rise in wholesale prices across several categories. The report provides a valuable gauge of inflation trends within the economy as it captures the price changes from producers' perspectives. Let’s dive into the major insights and explore what they mean for businesses, policymakers, and consumers.

Overview of the October PPI Data

The PPI for final demand rose by 0.2% in October, following a modest increase of 0.1% in September. Over the past 12 months, the final demand index rose by 2.4%, signaling steady, though contained, inflationary pressures on the production side. Excluding the more volatile food, energy, and trade services, the index increased by 0.3% in October and 3.5% year-over-year, indicating some underlying inflation in core producer prices.

Final Demand Services: Primary Driver of October's Price Increase

A significant portion of the October PPI increase stemmed from final demand services, which advanced by 0.3%. This rise marks a steady increase from previous months and reflects broad-based price gains within service sectors:

  • Services excluding trade, transportation, and warehousing showed a 0.3% increase, leading the rise in service prices.

  • Transportation and warehousing services experienced a 0.5% price hike, indicating higher operating costs within logistics networks.

  • Portfolio management services saw a notable 3.6% price increase, contributing significantly to the overall rise in service prices.

This uptick in service-related costs can affect businesses reliant on professional services, financial services, and logistics, potentially impacting prices downstream.

Final Demand Goods: A Modest Rise in Prices

The index for final demand goods increased slightly by 0.1% in October after consecutive declines. Notably:

  • Goods excluding food and energy climbed by 0.3%, suggesting steady demand for manufactured goods.

  • Energy prices fell by 0.3%, while food prices saw a modest decrease of 0.2%.

The standout here was the 8.4% jump in the price of carbon steel scrap, reflecting price fluctuations in raw materials that could affect various industries, including construction and manufacturing.

Intermediate Demand Insights: Processed and Unprocessed Goods Climb Higher

Intermediate demand, representing the cost of goods and services in the production process, displayed varied trends:

  • Processed goods for intermediate demand rose by 0.5% after two months of declines, largely due to higher prices for processed materials excluding food and energy. Year-over-year, however, processed goods have declined by 1.2%.

  • Unprocessed goods for intermediate demand saw a more significant jump of 4.1%, the largest since August 2022. A 9.9% increase in energy materials, particularly crude petroleum, drove this rise.

These price increases at the intermediate stage may signal cost pressures on manufacturers and suppliers, likely influencing prices for consumers and businesses in the near future.

Stages of Production Analysis

Examining the PPI by production stages provides additional insight into where price changes are occurring in the supply chain:

  • Stage 4 intermediate demand (goods closest to final production) rose 0.2%, with notable increases in diesel fuel and rents for office and retail properties.

  • Stage 3 intermediate demand climbed by 0.5%, driven by goods inputs like diesel fuel and slaughter poultry.

  • Stage 2 intermediate demand increased by 1.5%, with goods inputs up by 3.8% due to jumps in crude petroleum and carbon steel scrap.

  • Stage 1 intermediate demand showed a 0.3% rise, propelled by higher prices for airline passenger services and carbon steel scrap.

What These Trends Mean for the Economy

The steady increases in October’s PPI, particularly within services and intermediate goods, suggest that inflationary pressures are present but not severe. Here’s what this could mean for different stakeholders:

  1. For businesses: Rising input costs, especially in services and core goods, may lead to increased expenses for production and logistics. Businesses may need to consider cost-management strategies or price adjustments to maintain margins.

  2. For policymakers: The continued rise in core PPI components could influence monetary policy decisions. The Federal Reserve may view these trends as an indication of persistent inflation within the supply chain, potentially affecting interest rate policies.

  3. For consumers: While direct consumer prices aren’t covered in the PPI, higher production costs can often translate into retail price increases. Consumers may notice price adjustments in areas affected by rising wholesale service costs, including travel, healthcare, and retail products.

Looking Ahead: What to Watch for in November

The next PPI release, scheduled for December 12, 2024, will reveal if these inflationary pressures persist into the year’s final quarter. Key areas to monitor include:

  • Service sector trends: As services remain a major factor in the overall PPI, any shifts here could influence broader price stability.

  • Intermediate demand for goods: Further rises in intermediate demand could signal ongoing supply chain pressures, especially if energy costs remain volatile.

In sum, October’s PPI report underscores that while inflationary pressures are present, they remain relatively contained and sector-specific. By keeping an eye on these trends, businesses and consumers can better anticipate potential price changes as the economy progresses into 2024.

Source: https://www.bls.gov/news.release/ppi.nr0.htm


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54 pips potential profit in 11 seconds on 13 November 2024, analysis on futures forex fx low latency news trading USDJPY and EURUSD on US BLS Consumer Price Index (CPI) data

According to our analysis USDJPY and EURUSD moved 54 pips on US BLS Consumer Price Index (CPI) data on 13 November 2024.

USDJPY (32 pips)

EURUSD (22 pips)

Charts are exported from JForex (Dukascopy).


October 2024 CPI Report: Key Highlights and Insights

Today’s Consumer Price Index (CPI) report from the Bureau of Labor Statistics reveals modest inflationary trends in October, showing a steady pace in prices with an overall increase of 0.2% for the month, consistent with the previous three months. This brings the year-over-year increase for all items to 2.6%, marking a slight acceleration from the 2.4% reported for September. Here’s a breakdown of the key drivers behind October’s CPI numbers and what it could mean for consumers and the economy.

Shelter Costs Remain a Key Driver of Inflation

Shelter costs, a substantial portion of the CPI, rose 0.4% in October. This increase accounted for more than half of the overall rise in the CPI for the month. Over the past 12 months, shelter costs have climbed by 4.9%, contributing significantly to the core inflation measure (all items less food and energy), which rose 3.3% year-over-year. Rent and owners’ equivalent rent both increased by 0.4% in October, reflecting the persistent upward pressure in housing costs.

Food Prices Continue to Climb, but at a Slower Pace

The food index increased by 0.2% in October, a slight slowdown from September’s 0.4% rise. Prices for food at home edged up 0.1%, with notable increases in cereals and bakery products (+1.0%) and dairy (+1.0%), as well as fruits and vegetables (+0.4%). However, the meats, poultry, fish, and eggs index fell 1.2%, driven by a sharp 6.4% decrease in egg prices. For food away from home, including restaurant meals, prices rose 0.2%. Over the past year, food prices have risen by 2.1%.

Energy Index Stays Flat After Recent Declines

Following a 1.9% decline in September, the energy index remained unchanged in October, bringing some stability after several months of fluctuation. Gasoline prices continued their decline with a 0.9% drop, contributing to the 12.2% decrease over the past year. Fuel oil also saw a notable reduction, with prices down by 20.8% over the last 12 months. However, the cost of electricity increased 1.2% for the month and has risen by 4.5% over the year, while natural gas increased by 0.3% in October, up 2.0% year-over-year.

Core CPI Sees Steady Growth, Driven by Services and Transportation

The core CPI, excluding the volatile food and energy sectors, rose by 0.3% in October. Services excluding energy increased 0.3% as well, with significant contributions from shelter and medical care. Used cars and trucks experienced a surprising uptick of 2.7% for the month, after several months of declines. Airline fares also jumped by 3.2%, and medical care services increased by 0.4%.

Apparel, Communication, and Household Furnishings Decline

While the prices of many items rose, some categories saw decreases. Apparel fell by 1.5% in October, following an increase in September, while communication and household furnishings indexes also experienced declines. These decreases helped to offset some of the monthly CPI gains, indicating some price variability across goods and services.

Annual Inflation and Outlook

The CPI report shows a steady 2.6% increase over the past 12 months, reflecting a measured but persistent inflationary environment. The energy index, which has been a source of relief with a 4.9% decrease over the year, helped balance the rise in shelter and other core costs. However, the uptick in core inflation, particularly from services and shelter, suggests ongoing challenges in keeping inflation within target levels.

Looking forward, the November CPI report, scheduled for December 11, will offer further insights into these trends. Key areas to watch will include the energy index, as seasonal adjustments for heating costs take effect, and shelter, which remains a major factor in inflation. The CPI data continues to be an essential gauge for understanding the economic pressures on consumers and will likely influence the Federal Reserve's monetary policy decisions in the coming months.

In Summary

October’s CPI data suggests a stable but gradually rising inflation environment, with shelter costs as the dominant force. Food prices continue to rise moderately, while energy costs remain volatile but stable for now. As inflation remains slightly above the Federal Reserve’s target, policymakers and consumers alike will be keeping a close eye on these trends heading into the winter months.

Stay tuned for our next update following the release of November’s CPI data, as we continue to track the evolving inflation landscape and its implications for everyday life and economic policy.

Source: https://www.bls.gov/news.release/cpi.nr0.htm


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24 pips potential profit in 5 seconds on 24 October 2024, analysis on futures forex fx news trading USDJPY and EURUSD on US Jobless Claims data

According to our analysis USDJPY and EURUSD moved 24 pips on US Jobless Claims data on 24 October 2024.

USDJPY (19 pips)

EURUSD (5 pips)

Charts are exported from JForex (Dukascopy).


Weekly Unemployment Insurance Claims Report: A Look at the Latest Trends

In the latest report released on October 19, 2024, the U.S. Department of Labor provided an overview of the unemployment insurance claims for the week. The data reveals mixed signals, with a notable drop in initial claims but an increase in the overall number of people receiving unemployment benefits. Let’s dive into the key highlights and what they mean for the labor market.

Initial Unemployment Claims Drop

One of the most encouraging pieces of data from this report is the drop in seasonally adjusted initial unemployment claims. For the week ending on October 19, the number of new claims fell by 15,000 to a total of 227,000. This decrease follows the previous week’s revised figure, which was adjusted up by 1,000 from 241,000 to 242,000.

The decline in initial claims suggests that fewer people are being laid off or forced to file for unemployment benefits, which could be a positive sign of labor market stability. Despite the slight upward revision for the previous week, this drop signals potential improvements in job security.

4-Week Moving Average: A Slight Increase

While the weekly initial claims showed a decrease, the 4-week moving average, which smooths out week-to-week volatility, saw a slight increase. The new average is now 238,500, up by 2,000 from the prior week’s revised average of 236,500. This uptick indicates that, while the weekly data looks favorable, the overall trend in unemployment claims remains steady, with no major swings in either direction.

Insured Unemployment Rises

The report also highlights a rise in the seasonally adjusted insured unemployment rate, which refers to the percentage of people currently receiving unemployment benefits relative to the total labor force. For the week ending October 12, the insured unemployment rate increased to 1.3%, up by 0.1 percentage points from the prior week’s unrevised rate. This may suggest that, while fewer people are filing new claims, the number of those remaining on unemployment rolls has grown.

The advance number of people receiving unemployment benefits, known as "insured unemployment," increased by 28,000 to 1,897,000, marking the highest level since November 2021. The previous week’s level was also revised upward by 2,000, indicating a trend of more individuals staying on unemployment for a longer period. This uptick could reflect challenges in finding new employment or could be the result of broader economic shifts affecting certain sectors.

What Does This Mean for the Labor Market?

The mixed nature of the report suggests a labor market that is neither deteriorating rapidly nor improving dramatically. On one hand, the drop in initial claims points to some resilience, as fewer workers are filing for unemployment benefits. On the other hand, the increase in continuing claims indicates that once unemployed, some individuals are struggling to find new jobs quickly.

Several factors could explain this trend. Rising insured unemployment could be attributed to specific industries facing downturns or seasonal fluctuations. Additionally, some workers may be staying in unemployment longer due to mismatches between available jobs and their skills or geographic location.

Conclusion

This week's unemployment claims report offers a snapshot of a labor market that remains in flux. While fewer workers are filing new claims, more are remaining on the unemployment rolls, leading to an overall rise in insured unemployment. As always, it’s important to keep an eye on both the short-term fluctuations and the long-term trends to get a clearer picture of the health of the job market.

For businesses and policymakers, these numbers highlight the importance of addressing both the immediate needs of unemployed workers and the underlying structural issues that could be contributing to the rising insured unemployment rate. Moving forward, the labor market will need to show more sustained improvements to ensure that more people can find stable, long-term employment.

Stay tuned for more updates as we continue to monitor these trends and their implications for the broader economy!

Sources: https://www.dol.gov/ui/data.pdf


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27 pips potential profit in 7 seconds on 11 September 2024, analysis on futures forex fx low latency news trading USDJPY and EURUSD on US BLS Consumer Price Index (CPI) data

According to our analysis USDJPY and EURUSD moved 27 pips on US BLS Consumer Price Index (CPI) data on 11 September 2024.

USDJPY (17 pips)

EURUSD (10 pips)

Charts are exported from JForex (Dukascopy).


Understanding the Latest CPI Data: Key Takeaways from August 2024

The Consumer Price Index (CPI) for August 2024 reveals subtle yet important trends in the U.S. economy. According to the U.S. Bureau of Labor Statistics, the CPI for All Urban Consumers (CPI-U) rose by 0.2 percent on a seasonally adjusted basis, maintaining the same rate of increase as observed in July. Over the past 12 months, the index recorded a 2.5 percent increase before seasonal adjustments, marking a relatively modest inflationary trend compared to previous years.

Breakdown of CPI Components:

  • Shelter: The cost of shelter continued to be a significant driver of the overall index, rising by 0.5 percent in August, thus contributing majorly to the broader index's movement.

  • Food: Food prices saw a slight increase of 0.1 percent, with food away from home experiencing a higher rise of 0.3 percent compared to food at home, which remained unchanged.

  • Energy: Contrasting these increases, the energy index fell by 0.8 percent, influenced by a significant drop in gasoline and fuel oil prices.

Year-over-Year Analysis:

  • General Index: The all-items index increased by 2.5 percent over the year, the smallest 12-month rise since February 2021, indicating a cooling period after higher inflation rates experienced in recent years.

  • Core Inflation: Excluding volatile food and energy prices, core inflation was up by 3.2 percent year-over-year, suggesting underlying pressures remain despite the overall stabilization of the index.

  • Specific Categories: Noteworthy annual increases were seen in shelter (5.2 percent), while energy commodities experienced sharp declines, particularly gasoline and fuel oil, highlighting the fluctuating nature of energy markets.

Sector-Specific Insights:

  • Transportation: Airline fares notably increased by 3.9 percent in August after months of decline, likely reflecting seasonal travel adjustments and broader economic activities.

  • Medical and Apparel: Both sectors saw modest increases, indicating varied consumer spending behaviors across different areas.

Forward-Looking Implications:

The CPI data not only serves as a gauge of past and current economic conditions but also provides insights into potential future trends. The steadiness in core inflation suggests that while the economy faces inflationary pressures, they may be becoming more entrenched at a moderate level. This has implications for monetary policy, as policymakers must balance stimulating economic growth with preventing runaway inflation.

Consumer Impact:

For consumers, understanding the CPI is crucial as it affects everyday decision-making regarding spending, saving, and investing. The variations in food, energy, and housing costs directly impact budgeting and financial planning.

Conclusion:

As we look forward to the CPI data for September 2024, scheduled for release in October, stakeholders from policymakers to consumers should consider the nuanced changes in the CPI components. Staying informed will be key to navigating the economic landscape, which remains dynamic amid varying inflationary pressures.

Inflation continues to be a critical economic indicator that demands close monitoring. For those planning budgets or investments, keeping an eye on these trends can provide essential insights into timing and strategy adjustments necessary to safeguard financial health in an ever-changing economic environment.

Source: https://www.bls.gov/news.release/cpi.nr0.htm


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32 pips potential profit in 69 seconds on 11 July 2024, analysis on futures forex fx low latency news trading USDJPY and EURUSD on US BLS Consumer Price Index (CPI) data

According to our analysis USDJPY and EURUSD moved 32 pips on US BLS Consumer Price Index (CPI) data on 11 July 2024.

USDJPY (12 pips)

EURUSD (20 pips)

Charts are exported from JForex (Dukascopy).


Navigating the Economic Waves: A Deep Dive into the June 2024 Consumer Price Index Report

The U.S. Bureau of Labor Statistics (BLS) recently released its Consumer Price Index (CPI) report for June 2024, revealing a nuanced snapshot of the current economic environment. The report, which saw a slight decline of 0.1% on a seasonally adjusted basis from the previous month, offers valuable insights into the shifting dynamics of consumer prices in the U.S. economy.

Key Highlights of the June 2024 CPI Report

The all items index, which measures a broad spectrum of consumer goods and services, rose by 3.0 percent over the last 12 months. This increment, though modest, indicates a slowdown from the 3.3 percent increase observed at the end of May 2024. Here's a closer look at some specific segments:

  • Energy: The index for gasoline plummeted by 3.8 percent in June, mirroring a similar drop in May. This continued decline significantly contributed to the overall decrease in the energy index, which also fell by 2.0 percent over the month.

  • Food: Contrary to the energy sector, food prices saw a slight increase. The overall food index rose by 0.2 percent, with the food away from home index up by 0.4 percent. This indicates sustained demand and perhaps a bit of resilience in the food sector despite broader economic conditions.

  • Core Inflation: When stripping out volatile food and energy prices, the core CPI (all items less food and energy) inched up by 0.1 percent in June. Notably, this represents the smallest monthly increase since August 2021, signaling a potential cooling of underlying inflationary pressures.

Sector-Specific Analysis

The shelter index continues to be a significant driver of the core inflation, despite only increasing by 0.2 percent in June. This subtle rise is the smallest since August 2021, potentially indicating a cooling in the housing market. Meanwhile, the indexes for motor vehicle insurance, household furnishings, and personal care all rose, underscoring that some areas of the economy are still experiencing upward price pressures.

Transportation services saw some of the most substantial fluctuations, particularly airline fares, which tumbled by 5.0 percent in June after a 3.6-percent decline in May. This drop could be reflecting seasonal adjustments or broader changes in consumer travel behavior.

Economic Implications and Consumer Impact

The latest CPI data suggests a mixed bag of economic signals. While the decline in energy prices can offer some relief to consumers, the rise in food and shelter costs could offset these benefits. Additionally, the modest rise in core CPI indicates that while inflationary pressures may be cooling, they remain present, affecting the cost of living and potentially influencing future monetary policy decisions.

For consumers, understanding these trends is crucial. Those planning budgets or major purchases will find it beneficial to track such indices closely, as they directly impact everyday expenses. On a broader scale, these trends also provide insight into the health of the U.S. economy, offering clues about potential future actions by policymakers, such as interest rate adjustments by the Federal Reserve.

Looking Ahead

As we move into the second half of 2024, all eyes will be on the upcoming July CPI report, due for release on August 14. Will the trend of modest increases continue, or will we see a reversal in certain sectors? Only time will tell, but for now, consumers and economists alike should remain vigilant, monitoring these indicators closely as they navigate the complex landscape of the U.S. economy.

In conclusion, the June 2024 CPI report paints a picture of an economy experiencing varied sectoral dynamics, highlighting the importance of nuanced analysis in understanding the overall economic health and making informed decisions.

Source: https://www.bls.gov/news.release/cpi.nr0.htm


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Analyzing the Dip: A Closer Look at the May 2024 Producer Price Index Report

The U.S. Bureau of Labor Statistics' latest release of the Producer Price Index (PPI) for May 2024 presents some intriguing shifts in the economic landscape. The report, detailing the movements in prices from a producer's perspective, shows a decline in final demand by 0.2 percent. This is particularly notable following a 0.5 percent increase in April and a slight decrease in March. Over the past 12 months, however, the index for final demand has advanced 2.2 percent on an unadjusted basis.

Key Highlights from the May 2024 PPI Report

Decline in Final Demand Goods: The report indicates a significant 0.8 percent drop in final demand goods, marking the largest decline since October 2023. A major contributor to this decrease was the energy sector, which plummeted by 4.8 percent. This sharp decline in energy prices, particularly a 7.1-percent decrease in gasoline prices, heavily influenced the overall drop in goods prices.

Stability in Services: In contrast to goods, prices for final demand services remained unchanged in May, after a rise in the previous month. Within the services category, trade services and services excluding trade, transportation, and warehousing saw minor increases of 0.2 percent and 0.1 percent, respectively. However, transportation and warehousing services experienced a notable drop of 1.4 percent.

Intermediate Demand: Intermediate demand also saw significant shifts, with processed goods for intermediate demand falling by 1.5 percent, driven largely by an 8.0 percent decline in processed energy goods. On the other hand, unprocessed goods for intermediate demand declined by 1.8 percent, largely due to a 6.6 percent drop in unprocessed energy materials.

Economic Implications

The decline in the PPI for May underscores several key economic trends and potential implications:

  1. Energy Sector Volatility: The substantial decrease in energy prices, especially gasoline and diesel, suggests volatility in the energy sector, which could be due to fluctuating global oil prices or changes in domestic production and inventory levels.

  2. Inflationary Pressures: While final demand goods prices have fallen, the unchanged prices in services indicate sustained demand and potentially ongoing inflationary pressures in parts of the economy not directly impacted by energy costs.

  3. Sector-Specific Impacts: The mixed performance across different sectors highlights the uneven recovery and challenges facing various industries. For example, while the food and alcohol retailing segments saw price increases, airline services and machinery and vehicle wholesaling faced declines.

Looking Ahead

As businesses and policymakers digest these figures, the PPI provides crucial insights into the pressures faced by producers which can eventually trickle down to consumer prices. The stability in services despite the drop in goods prices may cushion the overall economic impact in the short term. However, the ongoing volatility in energy prices remains a wild card that could influence future economic conditions.

In conclusion, the May PPI report serves as a vital barometer for economic health, offering a glimpse into the dynamics affecting producers that could shape policy decisions and market strategies in the coming months. With the next PPI release scheduled for July 12, 2024, all eyes will be on whether these trends continue, stabilize, or reverse, setting the stage for mid-year economic forecasts.

Source: https://www.bls.gov/news.release/ppi.nr0.htm


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Understanding the Consumer Price Index for May 2024: Insights and Implications

The recent release of the Consumer Price Index (CPI) data for May 2024 by the U.S. Bureau of Labor Statistics offers a detailed glimpse into the economic trends and consumer pricing landscape. Notably, the CPI for All Urban Consumers (CPI-U) remained unchanged in May, after a modest increase of 0.3 percent in April. Over the past 12 months, the overall index has seen an increase of 3.3 percent before seasonal adjustment.

Key Highlights from the May 2024 CPI Data:

  • Stable Consumer Prices: The overall stability in the CPI-U in May contrasts with the previous month's rise, reflecting a balance between sectors where prices increased and those that saw declines.

  • Shelter Costs Continue to Climb: The shelter index rose by 0.4 percent, maintaining the same growth rate for four consecutive months, which indicates a persistent upward pressure on housing costs.

  • Divergence in Food Prices: While the overall food index nudged up by 0.1 percent, significant variation was observed within this category. The food away from home index increased by 0.4 percent, in contrast to the unchanged status of the food at home index.

  • Decrease in Energy Prices: The energy index decreased by 2.0 percent in May, driven by a substantial 3.6 percent drop in the gasoline index. This decline helped offset some of the rising costs in other areas.

Detailed Analysis:

  1. Sector-Specific Trends:

    • Energy: The sharp decline in gasoline prices significantly impacted the energy sector, which saw an overall decline despite previous increases. This decrease in energy costs, while beneficial in curbing overall inflation, raises questions about the volatility in energy markets.

    • Food: The modest increase in the food index is reflective of a relatively stable food pricing environment, although variations exist between dining out and eating at home, with the former experiencing higher inflation.

    • Healthcare and Education: Both sectors saw increases, with medical care rising by 0.5 percent in May and education by 0.4 percent, indicating ongoing cost pressures in these essential services.

  2. Economic Implications:

    • The stability in the CPI indicates a balancing act between rising and falling sectors, suggesting that while certain costs continue to rise, overall inflation pressures are being moderated by declines in other areas like energy.

    • The persistent increase in shelter costs is a concern for long-term affordability and living standards, particularly in urban areas where CPI measurements are most applicable.

  3. What to Watch:

    • Future Energy Prices: Given the volatility in the energy sector, future reports should be closely monitored to gauge whether May’s decrease in energy prices is a temporary dip or the start of a longer-term trend.

    • Food and Shelter Costs: As these are significant components of the CPI and directly impact consumer budgets, ongoing increases could pose challenges for consumer spending power.

Conclusion:

The May 2024 CPI report highlights the complex interplay of various economic factors influencing consumer prices. With the index for all items less food and energy rising modestly, it’s crucial for policymakers and consumers alike to monitor these trends closely, particularly as they relate to the cost of living and inflation expectations.

Looking ahead, the next CPI release scheduled for July will provide further insights into whether these trends are solidifying, offering a clearer picture of the economic direction in the second half of 2024. For now, consumers and analysts alike would do well to keep an eye on the evolving economic landscape, especially in sectors like energy, food, and housing, which are crucial to everyday financial planning and policy formulation.

Source: https://www.bls.gov/news.release/cpi.nr0.htm


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