Core Cpi Slips to 2.8% Annuly, Headline Inflation Falls Below Estimates

Food Prices Tick Higher Again Food Inflation Continued to Rise, with The Overall Food Index Up 0.4% in March. Prices for Food at Home Rose 0.5%, Led By A 5.9% Surge in Egg Prices and A 1.3% Increase in the Meats, Poultry, Fish, and Eggs Category. Food Away from Home Also Increased 0.4%. On an Annual Basis, Food Prices Climbed 3.0%, Reflection Ongoing Supple-Side Constraints in Some Categories.

Core Service Stay Elegated But Show Signs Of EASING Shelter, A Key Component of Core Inflation, Rose 0.2% In March, Slowing Slightly from Previos MONTS. OWNERS ‘Equivalent Rent Increased 0.4%, While Rent of Primary Residence Rose 0.3%. Transportation Services Droped 1.4%, Weighed Down by Airline Fares (-5.3%). Meanwhile, Personal Care and Medical Care Indexes Both Rose, Thought Prescription Drugs Fell 2.0%. Despite Pockets of Strength, Core Service Inflation Is Showing Early Signs of Stabilization.

Sofening Inflation StrengThens Rate Cut Expectations The Moderation in Both Headline and Core Inflation Supports of the Case for Policy EASING by the Federal Reserve Later This Year. With Core CPI Trender Lower and Energy Acting As A Deflationary Force, Traders May IncreASINGLY PRICE IN A MORE DOVISH FED STANCE.

Market Forecast: Bearish USD, Bullish Equities and Bonds The Softer Inflation Data Tilts of the Outlook Toward a Bearish Bias on the US Dollar, As Rate Cut Experts Gain Traction. Equities and Treasuries Are Likely to see Support from Easing Inflation Pressures and the Potential for Lower Interest Rats. Traders Should Watch UpComing Fed Commentary and April Inflation Data for Confirmation of this Trend.