Quote from: btc78 on Today at 09:14:29 AM

Quote from: Wind_FURY on May 15, 2024, 06:01:27 PM

If the CPI prints another small decrease during the next report, both legacy and cryptocurrency markets could surge to new all time highs. But to play the devil's advocate, isn't the sudden change of mood to extreme bullishness also inflationary?

A decrease in CPI prints has its own advantages and disadvantages. Looking at it closely, a decrease in CPI prints will benefit the consumers. CPI prints decreasing will allow consumers to buy products and services at much lower prices.

CPI prints can actually be used to assess which investment one can make. But like you said if it decreases too suddenly, it might not be as beneficial as it looks like.

More purchasing power will result in higher demand and if the supply can not keep up it might inflict inflationary tendencies.

CPI is an inflation index, a decreasing CPI index means inflation is decreasing . How can a sudden drop in CPI cause a supply shock and a rebound in inflation ? I really don't understand what you are saying .

I don't know how the government comes up with the final result of the CPI, but it is an inflation index and the Fed will rely heavily on it to decide whether to lower interest rates or not . The sharper the CPI falls , the faster it shows that our economy is recovering .
But I don't think CPI will fall below 2% this year anytime soon , and it won't be difficult to have a bullish season this year because CPI is falling quite slowly .