According to Dow Jones, economists predicted the consumer price index to rise 0.2% in July, down from 1.3% in June. Consumer inflation is predicted to dip to 8.7% year on year in July, down from 9.1% in June.
The Consumer Price Index (CPI) will be released at 8:30 a.m. ET on Wednesday, and is expected to reveal that inflation has finally peaked. Investors are also looking for hints in the report as to how active the Federal Reserve will be in raising interest rates to combat rising costs.
Before the announcement of CPI, some key companies will also be issuing a statement as to the status of their quarterly earnings, adding to the list of the already announced company financial reports.
Walt Disney Company
Walt Disney Company (The) is expected to release earnings after the market close on August 10, 2022. The report will cover the fiscal quarter that ends in June 2022. According to analyst projections, the consensus EPS for the quarter is $0.94. Last year, the reported EPS for the same quarter was $0.8.
NIO Inc.
On August 10, 2022, NIO Inc. is anticipated to release earnings. The algorithm used to determine the forthcoming earnings date is based on the historical reporting dates for the company. Once the company discloses the actual results date, analysts may change this date in the future. Reported earnings per share for the same quarter last year were $-0.07.
Why Core CPI is important
The Core Consumer Price Index (CPI), which excludes food and energy, tracks changes in the cost of goods and services. The CPI tracks price changes from the consumer’s point of view. It is a crucial tool for tracking inflation and shifting consumer patterns.
A reading that is higher than anticipated should be interpreted as bullish or positive for the US dollar, whereas a reading that is lower than anticipated should be interpreted as negative or bearish.
The CPI statistic is sometimes referred to in the market as “headline inflation.” This CPI data is crucial in currency markets since inflation has a significant impact on central banks’ monetary policy decisions.
Given that central banks often have a mission to keep inflation at a reasonable level (the Federal Reserve and the Bank of Japan have both set an annual inflation rate of 2.0%), policymakers use interest rates to achieve these goals. They may also implement other policy prescriptions like bond-purchasing agreements or money supply expansion.
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