Will CPI report boost rate cut bets? Inflation data according to the CPI and PCE measures have started to diverge lately, clouding the outlook just as the Fed seeks more clarity on where prices are headed.
US CPI inflation expected to have ticked up in March. But markets may shrug it off if core figure inches lower. Data due at 13:30 GMT, Wednesday, will be followed by FOMC minutes at 18:00 GMT. Headline CPI has persisted above 3.0% since last summer, while core CPI has been declining at a snail’s pace. It’s a somewhat more favourable trend when looking at the personal consumption expenditures metric that the Fed prefers to focus on. The headline PCE price index rose marginally to 2.
Yet, there’s still a tendency to put more weight to the soft indicators than the hot data and this is keeping a lid on dollar gains. For example, the drop in the ISM services prices paid index more than offset the impact from the jump in manufacturing prices days earlier as well as hawkish commentary from Fed officials during the week. Meanwhile, cooling wage pressures in the March NFP numbers were enough to keep jitters over accelerating jobs growth to a minimum.
Dollarindex Fed Macroeconomics Inflation
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
What's driving the gap between CPI and PCE inflation?Progress in reining in inflation is further along by some measures relative to others.
Read more »
US Dollar Forecast: PCE inflation data now the focal pointThroughout another notably productive week, the US Dollar (USD) successfully regained more stability, concluding its second consecutive week with gains and managing to reclaim the area beyond the 104.00 barrier when tracked by the US Dollar Index (DXY).
Read more »
US core PCE inflation Preview: Federal Reserve preferred gauge set to decelerate on month in FebruaryThe core Personal Consumption Expenditures (PCE) Price Index, the US Federal Reserve’s (Fed) preferred inflation measure, will be published on Friday by the US Bureau of Economic Analysis (BEA) at 12:30 GMT.
Read more »
US Dollar braces for PCE inflation in thin-liquidity market conditionsThe US Dollar (USD) never sleeps and that proverb certainly applies to this Friday. The Greenback holds onto recent gains on Good Friday, a bank holiday during which European and US trading desks will be running at minimum capacity. This
Read more »
PCE inflation rises for the first time since SeptemberCPI, PCE, and PPI inflation (that is, all of the Federal Reserve's main measures of headline inflation) are all on the rise as price instability worsens.
Read more »
Gold clings to gains with focus on US core PCE InflationGold price (XAU/USD) holds onto gains near $2,200 in Thursday’s European session.
Read more »