Preview of Tuesday's US Consumer Price Index Report: Key Expectations and Market Reactions

Monday, 11 March 2024, 17:51

The highly anticipated US consumer price index report on Tuesday will be crucial for the Federal Reserve as they monitor inflation. Economists are expecting a slight pullback in the core CPI for February, creating uncertainty in the market. Market reactions will depend on crucial figures like headline CPI and real weekly earnings, with special focus on shelter metrics due to recent concerns over data inconsistencies. Traders will closely scrutinize underlying trends in services inflation for insights into the market direction.

https://store.livarava.com/359681bc-dfd0-11ee-9662-5254a2021b2b.jpe — Preview of Tuesday's US Consumer Price Index Report: Key Expectations and Market Reactions

US CPI Report Overview

It's all about inflation for the Federal Reserve, making Tuesday's US consumer price index report pivotal. Fed Chairman Jerome Powell emphasized the importance of 'some good inflation readings'.

Economists' Expectations

Core CPI expected at +0.3% m/m and +3.7% y/y
+0.4% m/m and 3.1% y/y for headline CPI
Market to watch real weekly earnings metric and evolving shelter metrics

If skewed shelter metrics persist, it could lead to market volatility, impacting CPI readings.

Traders focused on underlying services inflation trends for broader market signals.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

US CPI Report Overview

Economists' Expectations

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