ECONOMIC INTELLIGENCE
Inflation is a number. Its market impact is a story.
How expectations, revisions and interest rates shape the response to an economic release.
A release needs context
Inflation measures changes in prices over a defined period. A headline figure alone does not describe the full picture: the composition, the comparison period and revisions to earlier data all matter.
Expectations and observed reactions
Markets may respond to the difference between an outcome and expectations. A higher reading does not guarantee a particular direction for gold, currencies or equities. Monetary policy expectations, positioning and other news may affect the reaction.