2 thoughts on “What is CPI? What is the impact of CPI on the foreign exchange market?”
Rufus
CPI — Full name: Consumer price Index, The consumer price index. The macroeconomic indicators are usually used to reflect the changes in consumer goods and service price levels generally purchased by residents' families. We all know inflation, so how to measure the degree of inflation, we usually use CPI. The impact is as follows: The economic expansion → rise in prices → increased imports, export decline → trade deficit → USD against the RMB exchange rate, that is, the appreciation of the RMB - 【Chase Finance】
CPI refers to the price consumption index, (Consumer price Index), and English abbreviation is CPI, which is an indicator of price changes based on products and labor prices related to residents. index. The rise in this value will force the central bank to adopt a tightening monetary policy, withdrawal deposit reserve ratio or directly interest rate hikes. After entering the interest rate hike channel, the currency will depreciate directly. However, the foreign exchange market is a zero -sum game. After the domestic currency rate hike, it will attract international hot money. After international hot money enters, the local currency may appreciate. The time of time, the size of the role is not yet fixed.
CPI — Full name: Consumer
price
Index,
The consumer price index. The macroeconomic indicators are usually used to reflect the changes in consumer goods and service price levels generally purchased by residents' families. We all know inflation, so how to measure the degree of inflation, we usually use CPI.
The impact is as follows:
The economic expansion → rise in prices → increased imports, export decline → trade deficit → USD against the RMB exchange rate, that is, the appreciation of the RMB
- 【Chase Finance】
CPI refers to the price consumption index, (Consumer
price
Index), and English abbreviation is CPI, which is an indicator of price changes based on products and labor prices related to residents. index.
The rise in this value will force the central bank to adopt a tightening monetary policy, withdrawal deposit reserve ratio or directly interest rate hikes. After entering the interest rate hike channel, the currency will depreciate directly. However, the foreign exchange market is a zero -sum game. After the domestic currency rate hike, it will attract international hot money. After international hot money enters, the local currency may appreciate. The time of time, the size of the role is not yet fixed.