CPI: What GS Expects (Unchanged) and what Bloomberg Rejects (2% Target)

CPI Expected to Be Flat This Month

Good Morning.

Markets are more or less steady waiting for the CPI data, which itself should be non inflammatory. The street is expecting unchanged. This should give stronger impetus for Powell to get hawkish again.. if they are correct

Comment: CPI Day

The market expects the slowdown in inflation to stop. This translates to a 0.3% MoM increase in October core CPI corresponding to a year-over-year rate of 4.1%, That is the same as the previous month. Goldman agrees ( full report at bottom)

Consensus also expects a 0.1% MoM increase in October headline CPI which corresponds to a year-over-year rate of 3.3%, down from 3.7% in September. This would also translate into a roughly 0.3% increase in core services excluding rent and owners’ equivalent rent.