Originally Posted: 11/10/2022 8:30 AM ET
Updated: 11/10/2022 8:31 AM ET
What’s happening in the stock market today has dramatically affected the inflation outlook. It doesn’t matter if you’re trading penny stocks or stocks over $5 to feel the impact. While we mainly cover trending topics on cheap stocks to buy, 2022 has made sure to put a significant focus on economic data. It has been one of the main contributors to producing so many “new” penny stocks this year. It has also led to a quick reevaluation of all asset classes. That includes Bitcoin and cryptocurrencies, as seen in the last 24 hours from the FTX saga.
The November Fed meeting brought plenty of uncertainty, mainly resulting from Jerome Powell’s press conference. His words contradicted what was published in the November FOMC statement. It read slightly dovish. Meanwhile, Jerome “The Hawk” Powell made sure to quell much of the bullish exuberance from early in the session.
Now that the stock market looks ahead at today’s Consumer Price Index figures. CPI inflation data from October will either confirm Powell’s cautious outlook on policy or lay the groundwork for a potential pivot. September CPI inflation data came in at 8.2% compared to expectations of 8.1%. Increases in the shelter, food, and medical care indexes were the most significant contributors to the monthly seasonally adjusted all items increase.
Let’s go over some of the basics for those who may not be familiar with and are asking questions like:
What is CPI data??
CPI Inflation Data vs. PPI Inflation Data & Why CPI is data critical to the stock market today
How can CPI inflation data be used in your investing and trading strategy?; and lastly
What are the results of the September CPI inflation report?
What Is CPI Inflation Data & The CPI Report?
While the market jostles with concerns over cryptocurrency leverage and the FTX blowback, October CPI inflation data could be the final piece that either sparks bullish optimism or bearish pessimism heading into the end of the year. If you’re new to economics, however, you might not understand what CPI inflation data is or what to look for in October’s CPI report.
What Is CPI Inflation Data? CPI stands for “Consumer Price Index.”
The U.S. Bureau of Labor Statistics explains it as “The CPIs are based on prices of food, clothing, shelter, fuels, transportation, doctors’ and dentists’ services, drugs, and other goods and services that people buy for day-to-day living. Prices are collected each month in 75 urban areas across the country from about 6,000 housing units and approximately 22,000 retail establishments (department stores, supermarkets, hospitals, filling stations, and other types of stores and service establishments).”
– 7 Hot Penny Stocks With Unusual Options Activity, Time To Buy?
CPI data measures “the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Indexes are available for the U.S. and various geographic areas.”
September CPI Inflation Data
The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.4% in September on a seasonally adjusted basis after rising 0.1% in August, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all-items index increased 8.2% before seasonal adjustment.
The all-items index increased 8.2% for the 12 months ending September, a slightly smaller figure than the 8.3%increase for August. The all items less food and energy index rose 6.6% over the last 12 months. The energy index increased 19.8% for the 12 months ending September, a smaller increase than the 23.8%increase for the period ending August. The food index rose 11.2% over the last year.
Core CPI rose 6.6% over the 12 months ending in September. The energy index fell 2.1% over the month as the gasoline index declined, but the natural gas and electricity indexes increased. Meanwhile, the index for electricity rose 15.5% over the last 12 months, and the index for natural gas increased 33.1% over the same period. In addition, the food index increased 0.8% over the month as the food at home index rose 0.7%
October CPI Inflation Data Release Expectations
Let’s look at CPI and Core CPI expectations for October. The year-over-year CPI expectations for October are set at 8.0%. This would be lower than September’s 8.2% CPI readout. Core CPI is expected to come in at 6.5% for October and slightly lower than September’s 6.6%.
Consumer Price Index Report For October 2022 & CPI Numbers
The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.4% in October on a
seasonally adjusted basis, the same increase as in September, the U.S. Bureau of Labor Statistics
reported today. Over the last 12 months, the all items index increased 7.7% before seasonal
adjustment.
The index for shelter contributed over half of the monthly all items increase, with the indexes for
gasoline and food also increasing. The energy index increased 1.8% over the month as the
gasoline index and the electricity index rose, but the natural gas index decreased. The food index
increased 0.6% over the month with the food at home index rising 0.4%.
The index for all items less food and energy rose 0.3% in October, after rising 0.6%
in September. The indexes for shelter, motor vehicle insurance, recreation, new vehicles, and
personal care were among those that increased over the month. Indexes which declined in October
included the used cars and trucks, medical care, apparel, and airline fares indexes.
The all items index increased 7.7% for the 12 months ending October, this was the smallest
12-month increase since the period ending January 2022. The all items less food and energy index
rose 6.3% over the last 12 months. The energy index increased 17.6% for the 12 months
ending October, and the food index increased 10.9% over the last year; all of these
increases were smaller than for the period ending September.
If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!!