The US CPI data for April is due next week (Wednesday May 15 @ 0830 US Eastern time, 1230 GMT).
Analysts at UBS are expecting US inflation rates to trend lower in the months ahead, beginning with this report.
- “Investors are expecting April’s Consumer Price Index to show that the trend toward slowing inflation—which was interrupted in the first quarter of the year—is resuming”
- “Our view is that inflation will start heading back to the Fed’s 2% target in the coming months”
In the note UBS cite:
- moderating housing costs
- lower consumer spending
This article was written by Eamonn Sheridan at www.forexlive.com. Source