Special CPI (Amateur Hour) Prep

Founders: ZH Excerpts

Mkt Expectations:

• HEADLINE CPI expected

  • 3.2% YoY. (same as July)

  • equals +0.2% M/M

• CORE CPI expected

  • 2.5% YoY, (down from 2.9% in July)

  • equals +0.2% M/M

Our Behavioral Bottom Lines:

1. Wall Street has a good handle on CPI this month (see dispersion of predictions chart)

   

2. Therefore they believe CPI should not change expectations one way or the other.

3. At this poin…