White House says tomorrow's inflation data will show high year-on-year figure
Ahead of tomorrows key US Consumer Price Index data scheduled for New York's morning session, the White House says tomorrow's inflation data will show a high year-on-year figure.
The White House states that its irrelevant month on month number will continue trending lower the rest of the year.
The consensus in the market for January CPI print is for a 0.4% MoM (7.2% YoY) lift in consumer prices. The Core inflation is expected to come in at 0.5% MoM (5.9% YoY).
''The evidence from service prices and wages is that inflation pressures are broadening, while high energy prices continue to push the headline figure higher,'' analysts at ANZ Bank said in a note today.
''For markets, we think a rise in excess of 7.5% YoY will be needed to ignite renewed short term volatility as that would reinforce the January labour market report in raising the debate around a 50bps lift-off hike in March. Before the FOMC announces its decision, it will have the February labour market and CPI reports.''
''The path of that data will be important in helping to shape the Fed’s assessment of inflation in early 2022, and the tone of its communications.''
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
