Recently, U.S. inflation hasn’t been falling as fast as many hoped. On April 12, we’ll see Consumer Price Index data for March. Nowcasts suggest that March’s inflation data may show an improving outlook with estimated inflation running at a little over a 5% annual rate and an estimated month-on-month rise in prices of 0.3%. However, core inflation may be more of a concern running at an estimated 0.45% month-on-month once food and energy are stripped out, that’s because energy costs are expected to have generally fallen in the March report helping bring inflation down in the headline numbers.
Housing Costs
It will be important to look at the costs for housing, or shelter, as the CPI report terms it. These costs carry a large weight in the inflation calculation and shelter costs rose over 8% year-on-year in February’s report. That’s enough to move up the aggregate U.S. inflation number significantly.
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