{"id":124705,"date":"2021-05-11T22:25:52","date_gmt":"2021-05-11T22:25:52","guid":{"rendered":"https:\/\/precoinnews.com\/?p=124705"},"modified":"2021-05-11T22:25:52","modified_gmt":"2021-05-11T22:25:52","slug":"all-eyes-are-on-this-inflation-number-which-could-have-the-biggest-gain-in-nearly-a-decade","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/all-eyes-are-on-this-inflation-number-which-could-have-the-biggest-gain-in-nearly-a-decade\/","title":{"rendered":"All eyes are on this inflation number, which could have the biggest gain in nearly a decade"},"content":{"rendered":"<ul>\n<li>The consumer price index for April will be reported on Wednesday at 8:30 a.m., and is expected to be the hottest in nearly 10 years.<\/li>\n<li>Economists have said the jump in inflation looks larger because of the base effects of last year when prices were weak due to the pandemic shutdowns.<\/li>\n<li>The specter of inflation has been spooking investors, so any surprise the upside could stress the market.<\/li>\n<\/ul>\n<p>Consumer inflation data for April is expected to show the biggest year-over-year gain in nearly a decade.<\/p>\n<p>The anticipated 3.6% jump in the headline consumer price index in April would be the largest since Sept. 2011. CPI is expected to be up 0.2% month-over-month, when the data is released Wednesday at 8:30 a.m. ET, according to Dow Jones. That compares to March&#x27;s 0.6% increase, or gain of 2.6% year over year.<\/p>\n<p>On a core basis \u2014 which excludes food and energy \u2014 the CPI is expected to have increased by 0.3% or 2.3% year over year.<\/p>\n<p>For a market already spooked by the specter of inflation, the CPI could take on added importance if it shows a bigger increase than anticipated, particularly in the month over month figures.<\/p>\n<p>&quot;There could be a knee-jerk reaction in the market,&quot; said Mark Zandi, chief economist at Moody&#x27;s Analytics. But he said the Fed would take a higher number in stride and the sudden rise should be transitory.<\/p>\n<p>&quot;The things I would look at are rent growth and healthcare costs,&quot; he said. &quot;I would expect rent growth starts to pick up. Health care will likely remain low.&quot;<\/p>\n<p>Zandi added that one area he expects to see a big surge is used cars, with prices increasing 70% from a year earlier.<\/p>\n<h2>Don&#x27;t forget about base effects<\/h2>\n<p>Economists have been expecting the April data to show a big year-over-year increase to account for the base effects from last year when prices were weak due to the pandemic and economic shutdown.<\/p>\n<p>The Fed has maintained that the pickup in inflation will be temporary.<\/p>\n<p>Kevin Cummins, chief U.S. economist at NatWest Markets, said he is expecting headline inflation year-over-year to peak at 3.9% in May before beginning to go back down in June.<\/p>\n<p>For April, he expects a 3.6% jump. &quot;I think if there&#x27;s a risk, it&#x27;s probably to the upside on the core,&quot; Cummins said. &quot;We&#x27;ll see the base effects even more prevalent than we saw in March.&quot;<\/p>\n<p>The CPI report comes as market expectations for inflation have been rising. According to Bleakley Advisory Group&#x27;s Peter Boockvar, the market expectations is that inflation over the next five years will average 2.71%.<\/p>\n<p>&quot;The risks are now to the upside in these inflation stats, as one who believes the risk is not transitory,&quot; said Boockvar, chief investment officer at Bleakley.<\/p>\n<p>Source: <a href=\"https:\/\/www.cnbc.com\/2021\/05\/11\/inflation-aprils-cpi-data-could-show-a-massive-year-over-year-gain.html\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The consumer price index for April will<\/p>\n","protected":false},"author":3,"featured_media":124704,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23054],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>All eyes are on this inflation number, which could have the biggest gain in nearly a decade - 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