QuantCube launches CPI indicators for the UK, Eurozone and Tokyo

Press Release

QuantCube expands CPI indicators offering to the UK, Eurozone and Tokyo

Real-time nowcast indicators provide crucial insights into inflation trends 

Paris, 16 January 2024 – Alternative data analytics firm QuantCube Technology today announced the availability of QuantCube CPI Nowcast indicators for the UK, Eurozone and Tokyo. The new indicators, which quantify the Consumer Price Index (CPI) in each economy in real-time, give traders and investors crucial insights on inflationary trends weeks ahead of official CPI numbers which are published monthly with a time lag. 

QuantCube is providing both headline and core CPI data for each market, adding to the family of CPI indicators it already provides for France, Germany, the US, China and Brazil, all of which are available on the QuantCube Macroeconomic Intelligence Platform (MIP). By isolating and tracking different elements of inflation, including food and energy prices, QuantCube enables users to strip out these more volatile components to get a better view of the underlying inflationary trends in each economy and to view variations year on year and month on month.  

“The central banks of the UK, Japan and Euro area, which together with the US and China make up the world’s largest providers of liquidity, are carefully watching CPI and core CPI trends given inflation directly impacts fixed income markets,” explained Thanh-Long Huynh, CEO and Co-Founder, QuantCube Technology. “Quantcube’s CPI indicators provide highly accurate and timely insights that can be decisive for fixed income traders and asset allocators in anticipating changes in fixed income market regimes.”  

The QuantCube team applies a fundamental approach to constructing the headline and core CPI indicators – collecting and analysing high volumes of frequently-published alternative data on the prices of food, transport, goods and services – applying different weightings to this data based on the methodology and specific consumption patterns of each economy. QuantCube’s approach is unique in analysing real prices, not market sentiment, while also delivering a strong correlation of up to 95% with official consumer price data, and for US CPI, a correlation of 99%.

To assess early shifts in inflationary trends in Japan, QuantCube tracks the Tokyo Consumer Price Index (CPI) and its components on a daily basis. This index is not only considered an advanced indicator for the broader inflation trends in the country, but also exhibits a high (97%) correlation with the overall CPI for Japan.  

For the Eurozone CPI, QuantCube is using the same weighting methodology employed by Eurostat to compile and harmonise the data. This differs slightly to the methodology used by individual countries, such as France and Germany, and is very useful for investors and policymakers seeking an early indicator of the direction of inflation across the Eurozone.

QuantCube’s approach not only enables the seamless monitoring of effects resulting from public policy changes but also ensures real-time tracking of price adjustments prompted by these modifications. For example, if changes to VAT or an energy price cap are introduced, the change in prices can be tracked in real-time from the relevant date. This is made possible through the model's proactive tracking of upcoming changes, drawing information from news outlets and official institute publications and integrating it in real time into the QuantCube CPI Nowcast computation. 

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 15 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 Strategic Development Fund (SDF), the investment arm of UAE’s Tawazun Council. QuantCube’s R&D in computer vision has been partially funded by the European Space Agency (ESA) and French government space agency CNES.