Inflation Back in the Starting Rotation

March 11, 2024

Inflation Back in the Starting Rotation Photo

With opening day fast approaching and even long-suffering Pittsburgh Pirate fans holding out hope for a winning season, I can’t help but mix a baseball reference into this week’s Monday Morning Perspectives. Following a week highlighted by another inning of solid labor market reports, investors will be shifting their focus to inflation this week. The February Consumer Price Index (CPI) report will be released on Tuesday, followed by the release of the Producer Price Index (PPI) on Thursday.1

This week’s inflation readings take on added importance after last month’s disappointing inflation numbers delayed the expected timeline for rate cuts to begin, causing Treasury bond yields to move higher across the yield curve. Federal Reserve (Fed) Chair Jerome Powell helped restore a more optimistic outlook for the bond market last week after suggesting that easier monetary policy remains likely to arrive soon. More dovish messaging from the Fed is certain to require continued improvement on the inflation front, and this week’s data will be a critical test.   



1MarketWatch – U.S. Economic Calendar; as of 3/11/24



Tags: Inflation | Federal Reserve | Labor market | Treasury bonds | Consumer Price Index (CPI) | Producer Price Index (PPI)

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