Despite the recent surge in the Consumer Price Index (CPI), and better than expected PPI data, markets have shrugged off any concern… for now
Fickle
On Wednesday 10th April 2024 the CPI data announcement pushed the markets down and on Thursday 11th the markets recovered after the PPI data was better than expected.
CPI Report for March 2024
- Both headline and core CPI rose by 0.4%, surpassing forecasts.
- Bond markets are now cautious about potential rate cuts, shifting from a floor of three cuts to a possible ceiling.
- Groceries’ inflation has eased, but housing costs remain a pressure point.
- Fed policymakers closely monitor Supercore services inflation.
- Solid wage gains continue to impact prices.
Producer Price Index (PPI)
PPI increased by 0.6% in February 2024. Expectations persist for June rate cuts by the Federal Reserve.