The week could be choppy as inflation data comes in hot.
After a week in which a slew of Federal Reserve officials rained on the interest-rate parade and the markets sold off in a huff, it’s time once again to turn attention to the pace of inflation.
This week offers two opportunities to take the temperature of inflation. First up on Wednesday will be the consumer price index for March, followed a day later by the producer price index.
The data may offer mixed pictures on inflation. While the monthly rate of change in the CPI is forecast to drop to a 0.3% gain from 0.4% a month earlier, it is likely to mean an annual rate that inches up to 3.4% from 3.2% in February. The core index that leaves out food and energy costs is expected to decline to 3.7% from 3.8%. As for the PPI, forecasts are for it to have risen to 2.2% annually from 1.6% a month ago.
