Market Response to Inflation Data

The podcast highlights how the latest Consumer Price Index (CPI) data influenced market responses, with both equities and cryptocurrencies experiencing positive movements. The unrounded core month-on-month CPI came in slightly below expectations, suggesting inflation may be less concerning than previously thought, which contributed to bullish sentiment. Significantly, the podcast notes that owner’s equivalent rent, a considerable component of the CPI, showed an increase, indicating ongoing upward pressure on housing costs. This balancing act of mitigating inflation concerns while acknowledging rising living costs creates a complex environment for market traders.