It’s US CPI day.

While the consensus expects annual headline inflation to climb from 3.3% in March to 3.7% in April, the forecast for core inflation is a very marginal increase from 2.6% to 2.7%.

This is the critical metric to watch as it summarizes the prevailing view that energy cost spillovers will remain highly contained.

This stability is an important element of the "US economic exceptionalism" view under which not only does the US continue to outperform other advanced countries, but it also avoids the demand destruction likely to impact the rest of the world.

#economy #markets #inflation #CPI