What is CPI data and how can it affect our tech world?

CPI data means Consumer Price Index. It is the measurement of change in prices consumers pay in their area. To simply put it, it’s the measurement of inflation and deflation. 

This data is coming out tomorrow. For better or worse, we want to hear whether it's low or zero. Here is why? If I paid for a liter of milk for $3 I don’t want to pay $3.5 next time at the counter. The lower inflation gives us the comfort to save and invest more.

This will have an effect on prices of goods and the startup environment. The startups with the money to have will be able to spend more in their hands. If a Founder can organize an event for $800 to raise additional capital wouldn’t they do that? Think again! 

In addition, the tech world will be able to spend less on the price of complementary goods from vendors and save their funds for Human Capital. It will create additional jobs in the market for people that are out of work these days. 

One good thing to say is, the stock market will rally to this news. The consumers can invest with their savings and keep their additional money for retirement. This will produce massive good news for the economy. 

However don’t put your hopes up on it as inflation keeps on rising at the moment. On the other hand, winter is coming and energy prices are rising high for every individual household and businesses. 

Please note: I am not licensed to recommend stocks or investment advice. If you decide to act on this blog, that is solely your choice. This is just a newsletter to help you become aware of certain tech stocks and their price values around the world.

https://seekingalpha.com/article/4428290-dividend-yield-vs-inflation-in-modern-times