US: Focus on the CPI inflation for April – Danske Bank

Research Team at Danske Bank, suggests that in the US, focus will be on the CPI inflation figures for April.

Key Quotes

“CPI core inflation for March came out lower than expected at 0.1% m/m. This suggests that the pickup in core inflation is not yet 'durable', although low March inflation might just be a bump in the road. This makes the April CPI inflation print important, as continued low core inflation will likely prolong the more dovish stance by the Fed and lower the number of hikes, as the Fed wants to see core inflation move even higher before taking further action. We view the negative effects on core inflation as temporary and estimate the core CPI index rose 0.2% m/m in April, implying a core inflation rate of 2.1% y/y.”