QuantCube launches CPI indicators for Brazil and China
Press Release
QuantCube expands CPI indicators coverage
New Consumer Price Index indicators for emerging markets of Brazil and China add to existing CPI indicators QuantCube provides for developed economies
Paris, 19 January – Alternative data specialist QuantCube Technology today announced the availability of QuantCube CPI nowcast indicators for Brazil and China. The new indicators, which quantify the Consumer Price Index at a country level in real-time, are available on the QuantCube Macroeconomic Intelligence Platform (MIP). The launch of these new indicators forms part of a planned expansion of QuantCube’s CPI nowcasts for both emerging and developed economies.
With updates delivered daily, the new indicators will give traders and investors crucial insights on inflationary trends in Brazil and China ahead of official CPI numbers which are published on a monthly basis with a time lag. QuantCube’s indicators demonstrate a strong correlation of up to 99% with official consumer price data.
To construct the new CPI indicators the QuantCube team leveraged the proven methodology and bottom-up approach created for other developed countries – collecting frequently-published alternative data on the key subcomponents of CPI – and applied different weightings to this data, based on the specific consumption patterns of each country.
QuantCube’s CPI indicator calculations for China and Brazil incorporate two specific observations:
· Food and tobacco, together with transport-related prices such as motor fuels, best explain the dynamics of inflation in China;
· Transport prices, especially motor fuels and public transport, and essential food prices for items such as vegetables and meat are the key factors driving CPI in Brazil.
“The launch of these new CPI indicators for Brazil and China is part of our plan to expand our coverage of emerging markets and to provide real-time insights on the outlook for inflation in countries where accurate assessment of economic conditions has historically been challenging,” explained Thanh-Long Huynh, CEO and Co- Founder, QuantCube Technology.
“Using these new CPI indicators for Brazil and China, investors can gain a significant competitive edge to generate additional alpha in currency hedging and fixed income strategies. Once combined with QuantCube’s other indicators such as GDP nowcasts, these indicators can also help determine the current macroeconomic regime effectively and can be used to guide asset rotation and inform other, more complex investment strategies.”
Further countries will be added to QuantCube’s CPI nowcasts over the next quarter.
About QuantCube Technology
QuantCube Technology uses artificial intelligence and big data analytics to deliver real-time macro-economic insights. The firm operates one of the largest alternative data lakes in the world, processing more than 14 billion data end points. Sources encompass news, social media, satellite data, professional networks and consumer reviews, as well as international trade, shipping, real-estate, hospitality and telecoms data.
QuantCube’s macro nowcast indices, on variables including economic growth, inflation, employment and international trade, correlate highly with official data and significantly beat the consensus. Financial institutions using QuantCube data benefit from real-time insight, often ahead of official numbers, which they can use to inform their investment strategies.
Headquartered in Paris, QuantCube employs a diverse international team of data scientists with expertise in multilingual NLP, deep learning and machine learning techniques. The company’s shareholders include Moody’s and Caisse des Dépôts and its R&D in computer vision has been partially funded by the European Space Agency (ESA) and French government space agency CNES.
