US: CPI data awaited - Scotiabank

Analysts at Scotiabank explain that US CPI figures for March will be simultaneously released today and while it is not the Fed’s preferred inflation gauge, the figures will be used to translate the retail sales figures into a volume estimate independent of price effects.

Key Quotes

“Gasoline prices were fairly flat in March and this may help anchor headline CPI around little change in month-ago terms. When combined with the fact that headline inflation in year-ago terms will be compared to the start of an upward trend last March it may be that base effects start to put a cap if not downward pressure on inflation. CPI will also be used to determine real wage growth in the simultaneously released figures for March.”