BCKIF - April CPI Preview: Sticky Inflation Likely But Investment Opportunities Open Up

2024-05-11 12:46:54 ET

Summary

• After worrisome CPI inflation figures in March, that prompted hawkishness from the Fed, the April figures are particularly significant to look out for.
• Forecasts don't indicate reason for optimism though. Even as gasoline inflation can come off, the other big contributor to inflation, shelter, can stay sticky.
• Still, investing opportunities can be found in oil stocks and ETFs along with defence and even looking beyond the US to emerging markets.

Inflation based on the consumer price index [CPI] in March was difficult to digest for multiple reasons. At 3.5% year-on-year (YoY), it was the second consecutive month of an increase, the fastest pace seen in 2024 so far, and a six-month high (see chart below)....

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