Hey, what's going on team? It's Ricky with techbook Solutions Hope you guys are all having a good start to your Monday Let me go ahead and quickly talk about Market's expectation for tomorrow's CPI Data report. For those that are unaware uh, tomorrow which is going to be June 13th. Uh, there's going to be the new Inflation Report also known as the Consumer Price Index Report and this is where again this report pretty much just tracks month after month if inflation is going up or down. Obviously, inflation has been a really big Focus for the overall Market as the Federal Reserve has been raising interest rates to really slow down the economy to bring down inflation.

so I thought I would break down not just what has been reported before but what Market's expectation is for tomorrow. I Do want to remind you that tomorrow one hour before the Market opens which is at 8 30 a.m eastern time is when the new CPI data report gets released. I will be live streaming it for free on my YouTube channel and all I've learned really ask you to do is if you plant a tune on in, drop a thumbs up, get this video to over 1500 likes, subscribe to the channel and if you want to tune on in for free tomorrow for that free live stream you need to turn on your post notifications because if not, YouTube will not notify you what it is that I go live. So please make sure that you're aware of that so very very quickly.

What is the Market's expectation for tomorrow's Consumer Price Index report? And that is a forecast of 4.1 percent. Our current inflation rate is at 4.9 percent. So how is it? and why is it that last time our forecast was five percent, but we only came in at 4.9 so it's lower than expected. But why is this time we're at 4.9 percent and we're expected to drop all the way to 4.1 percent.

So during my live training session today with the Lpp team I gave them a very quick breakdown and it's actually very simple to understand. So again, inflation is tracked based off of the previous 12 months. There's an exact formula on how it's actually calculated. This is just a rough explanation of it, but pretty much we take away the old month and we add the new month.

So this was the previous CPI data report for the month of April right? Meaning that this one got released in May right? It's always prorated because right now we're in the month of June, but the one that gets released tomorrow is going to be the month of May that gets added. and then we take away the old May. So again, how is it that we expect to go from 4.9 to 4.1 percent? That's a pretty significant drop. And yes, I do agree.

But why? Well, let's do the math very quickly and again, there's an exact formula, so it's not exactly like this. But for the month of April, this was last month when it was reported we took away 0.4 and added 0.4 right? This was the new inflation Uh, that was tracked that we experienced in the month of April for 2023 and this was her 2022 right? Because it's the previous 12 months and it's just showing you this is what we were at and now this is what we are at for the month of April So we take away 0.4 We then now add 0.4 so it's almost nearly a break even. But again, because of that formula, the actual way that is calculated, we still saw that drop to 4.9 percent. Now the new one that's going to be added tomorrow is we're going to be tracking for the month of May of 2023, But the month of May for 2022, we saw a huge jump of 0.9 percent.

And again, if the Market's expectation is to actually experience a drop um, or I'm sorry, not as big of a jump in inflation in the new month of May then being able to take away 0.9 for the previous month of May and again, that takes away a lot of what's being calculated right now at our current inflation rate. And then by adding the new one, remember I mean we can add what 0.2 I Think that's the Market's expectation for tomorrow. Market's expectation is to see in the month of May that we're going to see an increase of 0.2 percent. So we'll we can do that all day, right? We can add 0.2 which is what we saw in November.

We'll add points to the our formula, but then we take away 0.9 and you see the big difference there. We're taking away a huge month where inflation gapped up in 2022 very quickly, but in the month of May for 2023, inflation is not jumping up as quickly and this is why we should be able to see that big decline from 4.9 percent to 4.1 percent. Now again, this is just a forecast that doesn't mean that that's actually what needs to be reported right. What what could happen is that if the actual inflation rate comes in higher than expected, let's say it comes in at 4.2 4.3 percent.

The market can react in a negative way because inflation is coming in higher than expected, and that means inflation is not coming down as quickly as we originally expected it. Which means the Federal Reserve the following day, which is going to be on the 14th can announce a rate hike to accommodate how much inflation is still not going down. So this is the domino effect. Tomorrow on Tuesday we report the inflation report, and then on Wednesday There's an Fomc meeting from the Federal Reserve and this is where they're going to announce a rate hike, a rate pause, or a rate cut, and based off of what is reported on Tuesday for this inflation rate will most likely determine how hawkish or how dovish the Federal Reserve is when either choosing to raise cut or pause with the rate hikes.

Very simple to understand, right? but again, if this is still something that you're a little bit new to and you want to be able to get an explanation as it's happening live, This is the whole point of our live sessions. I mean I Trade Live every single morning If you want to learn more about it, it's the second link in the description down below. But on top of that, I will be hosting the live session for the CPI data report and again, all I ask you to do is get this video to over 1500 likes, subscribe to the channel and turn on your post notifications. So I hope that this video gives you a better understanding on how to better prepare for tomorrow's CPI data report.

If you have any further questions, feel free to send me a direct message via Discord or via Instagram And that's the first or third link in the description down below. But again, if you want to be able to watch me trade live as soon as tomorrow, that's going to be the second link in the description down below. and I'll see you tomorrow at Market Open for our live session! Appreciate your time and like always, let's make sure that we're in the year on everybody know. Take it easy team!.