We review US CPI data scheduled for release on Wednesday.
- The headline is likely to be +0.3% m/m despite another notable rise in energy prices
- We expect core inflation to slow to a “soft” pace of 0.3% m/m after recording a third consecutive strong gain of 0.4% in March.
- Unrounded core CPI forecast of 0.27% m/m suggests greater risk of a cautious surprise for a rounded 0.2% increase
Retail sales also:
- Retail sales are expected to rise for the third straight month in April, opening the second quarter on a flat footing
- Volatile automobile and gasoline station sales are likely to provide a major boost to growth
- The control group also helps drive headline exposure, although it is down compared to March
- Project sales at bars/restaurants – the only services component of the report – will remain flat
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previously:
- Bank of America's CPI forecast for April is 0.33% monthly and 3.4% yearly.
This article was written by Eamonn Sheridan at www.forexlive.com.
