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Investing.com – During these moments of trading, the US Bureau of Labor Statistics revealed the US inflation data that the markets have been anticipating for days. The importance of the data just released is that it reveals information regarding monetary policy.
Meanwhile, the number of Americans filing initial claims for unemployment benefits slowed last week, indicating strength in the labor market at the end of last year’s fourth quarter.
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The headline and core CPIs increased year-on-year in December compared to experts’ expectations, with the headline CPI increasing year-on-year surprisingly beating the November reading and also beating experts’ expectations.
On a monthly basis, the core CPI also recorded an acceleration compared to expectations and the previous reading as well, while the core CPI stabilized.
The data this time came in favor of stocks and not gold, after inflation accelerated again and unemployment benefits slowed less than expected, and also lower than the previous reading, which indicates the strength of the economy and the employment market, which gives the Fed the justification to maintain tight monetary policy for a longer period. .
Meanwhile, as soon as the data was released, it turned upward, while it significantly reduced its gains.
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Inflation data details
The index for December recorded an increase of about 3.4%, and expectations indicated an increase of only 3.2%, after recording 3.1% last November.
As for 0.3% in December, expectations were 0.2%, while the reading recorded in November was 0.1%.
While (excluding food and energy) on an annual basis, it recorded 3.9% in December, and experts’ expectations indicated an increase of only 3.8%, while last November’s reading recorded 4%. It recorded 0.3% in December, which is what experts expected, and it is the same percentage recorded in the November reading as well.
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Unemployment benefits data
Last week, it recorded 202,000 applications, according to data from the US Department of Labor. Economists had expected an increase to 210,000 initial claims. Especially since it recorded 203 thousand readings the week before last after adjusting the reading.
Thus, it recorded 207.75 thousand in 4 weeks, after recording 208 thousand in the previous reading.
The weekly unemployment index provides very temporary data, quantifies the amount of individuals claiming unemployment insurance for the first time during the past week and traders view unemployment as an indicator that gives a simple indication of the future performance of the economy. A downward trend has a positive impact on a country’s currency, as workers tend to spend more money.
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Gold and dollar now
It is now rising 0.4% to $2,035 an ounce.
While it rose by 0.35% to $2031 per ounce.
On the other hand, it rises to 102.275 points, or 18%.
2024-01-11 13:34:00
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