Data report was released today and inflation is at a 41 year high now at at 91. And in this video. I'm going to be breaking the actual cpi report in a very simplistic way if you learn something new please. All i literally ask you to do is drop a thumbs up and make sure you subscribe as i upload new videos.

Every single day about the stock market. Let's go ahead and jump right into it first off the overall nasdaq market is down. It's actually not down that much and it's actually beginning to show signs of a recovery. So that's very very encouraging.

This report was released. We actually live streamed it so if you want to watch it we live streamed. The report and it was released one hour before the market opened. This report was released and it's a june report that's released in july.

Right so it's it's backed one month right so we need the entire month to be. Complete. Inflation rose for the month of. June.

13 percent for the cpi uh. Data this puts. Inflation at. 91.

Percent. Well if you guys understand that previous. Inflation was at 86. Percent a lot of people began to ask the question well how.

Right 86 and then you add. 13 that doesn't equal 91. I want to explain it to you very quickly we dropped the the previous month of june right because it's calculating all previous 12 months. Consecutively we dropped the previous month of june for.

2021 which was 09. We dropped that out of the out of the formula and then we add 13. It's not exactly like that it still has to be. Weighed but when you add the.

13 again it's a difference of. About 04 and then you do. 04. Plus the 86 that we had that's 9 but again when it gets seasonally adjusted then we get the 91 percent when they use their exact formula the great thing about this is first off.

I just wanted to explain that the great thing about. This is that core inflation still dropped 01. For the third consecutive month. If i'm not mistaken please make sure that um you look a little bit more into it.

But core inflation is everything except for energy and food. But why would they remove energy and food well if you guys have paid attention for the past couple of months. You can see that energy and food consecutively have been the ones that have had the most negative influence on the cpi data report this looks very confusing to read i reassure you it is not so i'm actually going to zoom into it a little bit more just so we can all see it right you guys can see the way that i like to read this is vertically right from top to bottom this is the month of june. This is the month of may this is the month of april and then so on right these are the things that we are calculating and it's from month to month are we seeing an increase or are we seeing a decrease.

The only decrease that we saw this month was fuel oil we saw a decrease of 12. Percent. The great thing about this is that this was the first time. We've seen a decrease in fuel oil for all of 2022 progress with that being said again we still saw a big increase in gasoline and fuel uh.

I'm sorry for gasoline and energy commodities and so on right so we can see that um. If i'm not. Mistaken where is. It yeah gasoline energy commodities.

And overall energy that's. 112 104 and 7. Uh. 75.

These were the biggest increases that we saw for the overall um month of june and i do apologize. We do we did see an increase of utility. Piped uh gas services at 82. Percent.

The great thing about this is that people expect that for the month of july. Because oil prices are already beginning to go down. And you can see this with oil futures and all of that stuff right oil prices are beginning to go down that hopefully. It's not just fuel oil that sees a decrease for the month of july.

But hopefully. It's a couple of other of these energy commodities that begin to chip away at the their lump sum. So the way i read this is again the month over month. This is what is actually calculated this is the increase or decrease.

That is determined for the month of june. And then this is the lump sum for the the past 12 months. Ending with june 2022 and you can see that a lot of these different areas of food. And all these you know shelter all of these are in the mid to low single digits.

Some might be in the very low double digits. But if you look at the energy sector. Which is this entire section right here right this entire section. We're either at the mid to high double digits.

I mean even with this it's fuel oil if i'm not mistaken fuel oil is nearly at 100. I mean it was nearly at 100 based off of you know where we were last. Month but we saw a decrease of 12. Percent.

So you can see that fuel oil or the entire energy sector is what's having the most influence on inflation one of the things that you have to remind yourself is that raising interest rates will not bring down the prices of energy nor fuel and oil. Only policies that our president or the administration can put in place to you know create partnerships with other countries that can provide and supply oil to us can increase supply to keep up with demand and therefore. We don't have to see this of an aggressive increase in inflation in this area. And if energy begins to go down.

Then guess. What transportation services begins to go down right food begins to go down as it becomes less expensive to transport. These food goods and services to united states. So i just wanted to break down what has the most influence obviously.

It's the energy sector. What saw the decrease and really the only decrease was fuel and oil and then um. What were the biggest increases and obviously that's really just in that energy sector. So um a lot of people were talking about oh.

This means that we're gonna have to increase interest rates by one percent not just three quarters of a percent. I think it's very easy for the federal reserve to see that not only do their tools not have an influence on oil prices or energy or the energy sector and they've said this themselves. Jerome powell has said this many times you know publicly but on top of that they also can see that oil prices are already beginning to drop naturally and by already seeing that i don't feel like that's really an encouragement to take more of an aggressive approach in raising interest rates beyond. What we've already done can we see a three another three quarters of a percent interest rate hike.

Sure half a basis points um. Sure. But do i imagine a one percent interest rate hike. I i see that to be very unlikely with the factors that have been shared with us so i'm super excited to follow up one of the resistance levels that we talked about during our live trading session.

Today with the learn time profit group is this resistance level that we have right at that moving average. So i'm choosing to stay cash today meaning that i'm choosing to be very selective and probably will not be taking any positions. The reason. Why is i want the market to digest.

The cpi data report and instead of me making an impulsive decision and hope that i make money by buying the dip. I want the market to really digest. What just happened. What was said and i want to allow it to react not just an overreaction.

But i want it to react. So again you don't need a trade every single day especially if conditions are not in your favor keep trading simple right one of the things that we talked about in today's live session is holding uh and hosting a free live trading session this friday. So if you've ever wanted to see me trade live one of the things that we are planning to do this friday at market opens at market open is host a free live trading session. It's free you just have to subscribe to the channel.

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