The United States Consumer Price Index (CPI) and Producer Price Index (PPI) data are due to be released this week on Wednesday and Thursday respectively, and economists at BBH are already offering insights into what to expect. Inflation data is expected to take center stage this week, with the March CPI report set to be released on Wednesday. Headline figures are expected to show 0.2% month-on-month and 5.1% year-on-year, which is lower than February's figures of 0.4% and 6.0%. The Core CPI is expected to show a 0.4% month-on-month and 5.6% year-on-year increase, which is also lower than February's figures. However, the Cleveland Fed’s inflation nowcast model predicts slightly higher figures for both headline and core CPI.
On Thursday, the PPI figures are due to be released, and headline figures are expected to show 0.0% month-on-month and 3.0% year-on-year, which is slightly higher than February's figures. Core PPI is expected to show a 0.3% month-on-month and 3.5% year-on-year increase, which is higher than February's figures. These figures are important because they can give an indication of how much inflationary pressure is building up in the US economy. Many experts are watching the figures closely, and any surprises in the data could lead to market movements. Investors are keen to see if the Federal Reserve will change its policy stance based on the inflation data, and many believe that the figures released this week could have a significant impact on the markets.
