As markets prepare to release the US Consumer Price Index (CPI) data for January, multiple analysts give their views on the key inflation data. Among them, Goldman Sachs (GS) and Wall Street Journal (WSJ) Editor-in-Chief Nick Timiraos got the attention, because both suggest a surprise rebound in US CPI for Januarymainly due to the consolidation of the movement at the beginning of the year.
shyfrom the WSJ, cited the Federal Reserve (Fed) research paper titled “Residual Seasonality in Core Consumer Price Inflation: An Update”, to justify their expectations stating that “core inflation has generally been higher in the first half of the year than in the second“.
GSalong the same lines, mentioned that his economists have argued that inflation readings could be stronger early in the year because a disproportionate number of prices reset early in the yearand companies could set contract rates higher than usual in the current environment.
GS also cites recent market responses to data surprises as somewhat more symmetrical.
If the inflation data for January are not “up to the task”, the macroeconomic background could continue to push towards the depreciation of the dollarsays GS.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
