March CPI preview: Beware of still water
|Summary
The March CPI data will feel dated following President Trump's announcement of significantly larger tariffs across trading partners, but should shed some light on how the changing trade environment was already beginning to affect pricing. We estimate headline CPI was unchanged in March, leading the year-ago rate to sink to a six-month low of 2.5%. The details are likely to prove less encouraging than the headline as the drag from energy goods was fanned by growth concerns, core goods inflation was already on the upswing and services disinflation remains frustratingly slow. We estimate the core CPI advanced 0.2% again last month, bringing the year-over-year rate to nearly a four-year low of 3.0%. March now looks set to mark the nadir in core inflation this year, however, as the administration's efforts to reorient U.S. trade lead to faster price growth.
Download The Full Special Commentary
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.