If the February CPI data exceeds market expectations, it may trigger concerns about escalating inflation in the market. The heating up of inflation may lead to the Central Bank adopting more aggressive interest rate hikes to curb price pumps. Interest rate hikes usually bring a rise in financing costs, affecting consumption and investment, putting pressure on the stock market, especially growth stocks.

However, high CPI may also reflect a strong economic recovery, especially strong demand, indicating active market activity and increased consumer spending. Nevertheless, investors should be alert to the risk of the Central Bank possibly accelerating tightening monetary policy, especially in interest-sensitive assets such as bonds and real estate, which may face capital outflow pressure.

For stock market investors, if the CPI remains high and continues to rise, it may be necessary to reduce investments in industries with high valuations and reliant on a low interest rate environment, and instead focus on inflation-resistant assets such as commodities, energy, and companies with pricing power. These industries can maintain strong profitability during inflation and adapt to a high inflation environment.

#2月CPI数据将公布