All language subtitles for 6_fodase01asdasd

look at this screenshot right
here. Hey take a look at this

look at the data for example.
So let's just look at take a

the Fed to do soon so yeah guys
that's it for this lesson I

this data very important
because we've got to understand

detail but yeah so how does
this relate to inflation data

hope you understood everything
and yeah it's just a little

together with monetary policy
with everything. If you're in

cycle so this is something that
we're going to explore in more

cheaper prices but you're also
going to see a loss of jobs.

what we actually do. So guys
that's it for this lesson. Take

introduction into starting to
understand what Forex Factory

where we are so where the Fed
are in terms of the market

green and then they think buy
or sell. And that that is not

example right here. See if the
data is just simply red or

is because what a lot of retail
traders do particularly is they

all in consideration for later
on in the course. Um all of

want to promote inflationary
conditions. To get the economy

it means that prices of things
are getting cheaper but the

with the money supply they say
it's transitory this eventually

inflationary conditions because
what this mean lower inflation

doesn't happen because of the
inflation but everything comes

at the moment. So at the moment
we just got some we just got

their money supply so it's
coming to a point right now

understanding inflation year on
year, quarter on quarter and

for. Usually they want to see a
two percent growth in inflation

inflation. The effect that that
will have is they'll start to

reading. Let's just take a look
at what's going on in the world

4% goal. Uh not goal but a
result. This as you can tell is

Now these things are not it's
not the job unemployment thing

everything but of course one of
the biggest reasons right now

very inflationary in normal
economic times you won't be

to start moving to see that
economic activity. So keep this

some CPI readings for the whole
year. It was year on year.

inflation that means that they
may start to promote

effect on that as well is
you're not only going to see

that we are seeing and
therefore what can we expect

quite a few and also when it
gets to that year on year

throughout the year. So what
happens if the Fed see higher

could become permanent if they
don't do anything with their

the month on month. If they see
a steady increase throughout

goals of the Fed. Every year
the goal the Fed will set out

growth in inflation this is
sustainable and is one of the

also what the Fed are going to
do with their monetary policies

Fed analysis. So how do the Fed
actually respond to this data?

very deflationary times you
you're going to see the Fed

so-called PCE. They use this
data as a source of

policies so how about the
opposite what if they see lower

say it's temporary because of
COVID and what they've done

need to understand the effect
that it has on the market and

both CPI and PPI but more
importantly the core CPI or the

where we have to promote some
deflationary conditions

some parameters and some
targets that they want to aim

understand this as a concept
for now and then we'll

CPI reading they're not exactly
going to do this but they need

promote deflationary
conditions. Now because of one

the months and eventually
showing around the 2 percent

with interest rates everything
like that. So the Fed monitor

called the core CPI but also
known as the PCE index personal

to the short term fluctuations
seen in CPI data released of

inflation due to the supply and
the demand factors. Um whereas

what do the Fed use instead of
the normal CPI it's something

And this is the most important
thing because yes understanding

what happened with CPI and how
much it grew is okay. But we

obviously get into the numbers
later on. So let's look at some

coming either in the second or
the third section. So just

is essentially what the Fed
prefer to use. Now this this is

something that I'm going to get
into more detail in my course

this the PCE index actually
gets rid of that. So PCE index

said if there was a drought for
example for wheat maybe for the

is because of COVID because of
what the Fed had to do with

otherwise this what they call
transitory inflation so they

getting this unless there's
geopolitical reasons and

Rather than the 2% goal that
they were looking for. We got a

promotes economic activity to
grow. Cos of course you need

massive fluctuations in the
data released. Showing

natural disasters and certain
geopolitical events that make

wheat for as an example if we
look at wheat if there was a

saw a massive shift in the
market you know these

percentage points at the end of
the day because this is just

market most recently in one of
the CPI releases I believe it

that I need to introduce to you
called the core CPI. So the

also year on year. Like I said
there are also yearly readings

are produced monthly for the
month on month readings. Um but

consumption expenditures
instead because it is not prone

next few months you might get a
massive massive increase in

usual CPI data that we see such
as over here. You're going to

particularly in the Fed fund
rate video. I believe that's

therefore you might get massive
fluctuations in the price so

course you've got stand with
the normal CPI data that is

released it's going to be short
term fluctuation. So like I

month. This is the more
important reading that we get.

drought then of course the
supply is going to be affected

single month until that year
reading so these sets of data

certain commodities very
volatile. As an example if

going up to 1% inflation for
that month would be a lot and

economy and also to the
consumers. So there's something

that inflation but any more
than that can be harmful to the

means. So typically you have a
prediction percentage increase.

So what it means is if we
expect CPI to come out what

misleading results. Now these
fluctuations can be caused by

that's where you see start
seeing massive swings in the

The normal CPI includes food
and energy which can cause

aim for inflation of 2% a year.
Because this is healthy it

you've also got other readings
such as quarter on quarter and

that the Fed will use to
monitor inflation in comparison

and then they're predicted in
the central area. So they're

to their goals of 2% a year. So
if you remember back to the

few decimal percentage points.
So if it's for example 0. 1%

inflationary and it's 0. 9% or
even more than that. You know

number so if it's massive in
this case would would be just a

percentage increase price will
usually so if it's 0. 5% is the

was also expected to be 0. 7%
or something like that where in

by 0. 5 percent. Now typically
if you have a prediction

fact it was actually 0. 3%
lower than expected and then we

going to predict that CPI for
this month is going to increase

they'll put the previous I
believe on the right hand side

realize that CPI month on month
and then also core CPI month on

instead of 0. 5 or if it's the
other way round where it's very

inflation lesson the Fed and
other central banks they always

estimate for the next month but
you see a massively fluctuating

the monthly data is really
going to add up you know every

understand what the impact of
it is. So you're not just

indicators they have economic
research. What they will do is

You're actually going to
understand what it actually

they're going to do is based on
you know the different type of

looking at that data and seeing
if it's red, green or neutral.

price index it doesn't cover
services whereas PPI covers

this data on Forex factory
trade and economics and any

data that you may see
percentages and stuff and also

produce their products that's
also going to increase in

other FX sources so these are
the main This Forex factory is

a CPI and PPI and where to find
it as well so you can review

buying it and then here it's
the inflation for the people

when the data's coming out. So
the main thing is you must

that are selling it. So of
course as inflation increases

price. And that has an adverse
effect on on the CPI because of

going to be the main place that
you look at for sort of quick

main two parts that we look at
the WPI which is the wholesale

goods and services hence why we
don't use the WPI as much but

course this is the stage just
before. Um so now these are the

yeah so let's look at a little
overview of how we actually use

the goods that they buy to
actually manufacture and

of course it's always good to
know what it actually is and

the world right so all of this
is based on sort of estimates

because you can't you don't
have one average man in the in

can tell from the this is
inflation for the sellers of

like that there are some
arguments that would say the

producers of intermediate goods
and services over time as you

the products. So here CPI
measures the people that are

price index is a family of
indexes that measures the

average change in selling
prices received by domestic

CPI data isn't going to be the
most accurate piece of data

of what they expect everyone to
be using then the producer

course this includes
transportation food everything

in this case it would be
America for example so of

consumer needs. They include
transportation, food and

CPI. The CPI is a measure that
examines a weighted average of

prices of a basket of goods and
services which are of primary

inflation. So to measure
inflation we use a mainly three

medical care. So what this is
is an average for understanding

parameters. And there's two so
more premium ones that we look

price index but I explain why
we don't use it as much. So the

the producer price index.
There's also the wholesale

at. The main ones are going to
be the consumer price index and

central banks can actually do
about this. So measures of

the basic needs and purchases
of the normal consumer around

what the inflation is like in
the economy and what the Fed or

inflation and the impact it has
on the economy. But now how do

we actually measure this and
get a reading to understand

course in the previous lessons
we just looked at obviously

care and I'll see you in the
next video.

Yes guys welcome to the next
video. So in this one we're

going to be looking at measures
of inflation rates. So of