Interpretation of CPI data
The CPI data released in the evening showed that inflation has increased. It stands to reason that the market should adjust, but it is currently in a bullish trend, so the negative impact of the data is downplayed.
However, what we need to pay attention to is: the inflation data will not be easy to come down for the time being, because the price of crude oil cannot come down. Crude oil price is the engine of inflation indicators. Russia and the Middle East affect the international crude oil price. As an oil-producing country, it is inconvenient to suppress the price. At the same time, Russia also hopes that the US inflation data will go up, which will make the United States uncomfortable.
Therefore, the Fed's interest rate cut currently expected by the market may not necessarily come to fruition in 2024. Instead, it may turn into an interest rate increase. This is also the biggest uncertainty in 2024.
