Traders make more informed decisions by analyzing core CPI, which excludes volatile food and energy prices, providing a clearer picture of underlying inflation trends, and the for Better risk management by focusing on core CPI, traders can better assess inflation risks and adjust their strategies accordingly, potentially leading to more effective risk management in Improving market predictions. Core CPI can help traders predict future market movements, as it is a key indicator of inflation and economic growth.
But Overemphasis on a single indicator may become too focused on core CPI, neglecting other important economic indicators, leading to an incomplete market view recently Market volatility has been high as traders react strongly to core CPI releases, it has been leading to increased market volatility, as they adjust their positions accordingly.
Most times it's cool to Ignores short-term price fluctuations.
Core CPI excludes food and energy prices, which can be important for short-term trading decisions, potentially leading to missed opportunities.