BofA preview for this week’s US CPI report.
- Energy: Even though energy prices are higher, gas prices generally increase in March. Which means the seasonally adjusted rise might not be as scary for energy.
- Car prices: There is a decline in basic goods, mainly due to a drop in the prices of new and used cars.
- Basic Services: Expect non-housing services to result in a decline in basic services. We expect core services excluding rent and REL to show only a modest 0.2% increase compared to last month’s 0.5% jump. The main factors contributing to this slowdown are airfares and accommodation away from home.
The bank believes that a figure in line with market expectations leaves a June decline on the table.
This article was written by Arno V Venter on www.forexlive.com.
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