The Returning Turning Point of US CPI

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Junho] Market attention is focused on the U.S. Consumer Price Index for August, which will be released on the 13th (local time). With soaring inflation leading to interest rate hikes, which have exerted downward pressure on the stock market, this upcoming announcement is drawing significant interest.

Han Ji-young, a researcher at Kiwoom Securities, stated on the 11th, "The overall direction of the stock market for the remainder of September is expected to be determined based on the results of the U.S. consumer price index for August."

If the August consumer price index confirms a peak-out, the market is likely to see an improvement in risk appetite similar to early August. However, Han suggested that if excessive relief forms in the market, as seen during the Jackson Hole meeting, it would be appropriate to proactively prepare for the possibility that the U.S. Federal Reserve may block such expectations by reinforcing a hawkish stance.

Han explained, "However, considering that the factors driving U.S. inflation originated from sharp rises in energy prices such as oil, and despite volatility, recent prices of major raw materials like oil and natural gas have maintained a downward trend compared to the same month last year, the outlook for an inflation peak-out is deemed valid."

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