March’s inflation data, which is set to be released on Wednesday, is expected to show further signs of cooling inflation according to estimates from Bloomberg.
Bloomberg’s estimates show an expected Consumer Price Index (CPI) of 5.2% for March; a slowdown from February’s 6% gain. This would be the slowest annual rise in consumer prices since May 2001, albeit, still significantly higher than the Federal Reserve’s inflation target of 2%.
This month’s CPI reading is expected to show a 5.2% year-on-year CPI growth, compared to 6% in February. On a month-on-month basis, CPI is expected to come in at 0.2%, compared to February’s 0.4% rise. Core CPI is expected to rise at 5.6% on a year-on-year basis, down from February’s 5.5%, as well as 0.4% on a month-on-month basis, down from the 0.5% rise in February.
Given the expected CPI data as well as the Bureau of Labor Statistics’ strong jobs report last Friday, markets are giving a 70% likelihood that the Federal Reserve will raise interest rates by 0.25% in May.