US: CPI core inflation likely was 2.0% y/y and headline inflation was 2.3% y/y in April – Danske Bank

Analysts at Danske Bank suggests that the focus will be on US inflation in today’s US session with the release of the CPI figure for April.

Key Quotes

“We expect some reversal in both headline and core inflation after they fell sharply in March, driven partly by the timing of Easter and by lower energy prices. We estimate CPI core inflation was 2.0% y/y and headline inflation was 2.3% y/y, which would mean headline inflation has fallen from 2.8% to 2.3% in just two months, with a large part of this due to the base effects of oil prices. Note that although these numbers are at or above 2%, the Fed is more concerned about PCE core inflation, which is still below 2% and showing no signs of accelerating.”