Why US CPI & PPI Reports Matter to Us
This week is big:
- Wednesday: US PPI
- Thursday: US CPI
- Time: 5:30 – 6:00 PM Pakistan Time
Why should we care?
Just like we watch the dollar rate here, the whole world watches the US economy and Fed interest rates.
- *PPI (Producer Price Index):* Shows factory and wholesale price trends – if high, future inflation likely
- *CPI (Consumer Price Index):* Measures daily living costs – groceries, milk, rice, etc.
*The Fed* is like the US version of SBP.
- If the Fed cuts rates → markets go up
- If they keep rates high → markets slow down
*Market Impact:*
- *Crypto (BTC, ETH):* Lower inflation = pump, Higher = pressure
- *Stocks:* Rate cuts = rally, Delays = sell-off
- *Gold:* Inflation hedge – if inflation is rising, gold goes up. If calm, gold stays stable.
*Quick Summary:*
*Fed = the boss*
*PPI & CPI = the boss’s mood*
Good mood = markets pump
Bad mood = markets dump
