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Mar 12 - 11:00 AM
USD: CPI: Not The Focal Point For Markets - CIBC
First appeared on eFXplus on Mar 12 - 08:57 AM

CIBC discusses its reaction to today's US CPI report for the month of February.

"Let's all yawn together after reading today's US CPI release. Inflation hasn't been the focal point for markets, and February's slightly softer than expected US readings suggest that it's going to remain a non-issue for a while. Headline CPI matched expectations for a 0.2% monthly rise, but ended up rounding to 1.5% year on year pace, a tick lower than last month or the consensus," CIBC notes. 

"While the 12 month headline still includes weaker gasoline prices than a year ago, the core rate at 2.1%, down a tick from 2.2% the prior month, was also on the soft side after a below-expectations 0.1% gain in February. Tame readings for recreation and medical care contributed to that outcome. Medical care gets an even larger weighting in core PCE prices, which should remain below the 2% Fed target.

Slightly supportive for fixed income markets, but nobody was really that worried about inflation given how low 10 year rates already sit," CIBC adds. 

CIBC Research/Market Commentary


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