USD Rate hike depends on the US CPI, and investors also pay attention to the US CPI in stock trading, and central banks are also paying attention to the US CPI . What exactly is CPI? Consumer Price Index (CPI) is a measure of the total cost of goods and services purchased by ordinary consumers. Used to monitor changes in living expenses over time. When CPI rises, average households must spend more money to maintain the same standard of living. But what is in the CPI basket?
Let’s first look at the content of a basket of domestic CPI:
The highest weight in the Chinese CPI basket is food, tobacco and alcohol, reaching 28%, especially pork in the subdivision, which is the main contribution to the fluctuation of CPI inflation rate; although the weight of housing in China’s CPI is not low, and the housing here is not calculated based on the rental price, so the fluctuation is very small.
Let’s take a look at the contents of a basket of American CPI:
The highest weight in the United States is housing, accounting for 41%, followed by transportation and food and beverage, accounting for 17% and 15% respectively. Therefore, energy and housing are the main weights of the US CPI.
China and the United States have different performances, which is directly due to the different trends of the composition and dominant factors of CPI, which has also led to the fact that China's CPI can "stay alone" under the wave of global inflation, and the CPI's increase can maintain its 2.5%. The growth rate of CPI in the United States is currently maintaining above 8%, which on the surface causes great inflationary pressure in the United States.
In fact, the main driving factors for the outbreak of CPI in the United States are the high fuel prices, used car prices and agricultural product prices. The emergence of the US CPI turning point does not depend on The Federal Reserve's interest rate hike , but on when the Russian-Ukrainian conflict ends, when OPEC+ will over-expand production, and when the food crisis will be lifted. For these three factors, we have not observed any signs of significant change. By the end of this year, CPI may reach a 9% high. CPI data is actually serving the world's revenue from US dollar interest rate hikes, and it is also a reflection of the US's energy hegemony. The Nord Stream pipeline was destroyed, and Ukraine's grain production cuts were all the shadow of the US imperialist, and these crises were all economic games. Money serves people, but capital is bloody, after all, capitalists are a few.
