SPVU - The Hot CPI Report May Be A Big Problem For The Market

2024-04-10 12:35:10 ET

Summary

• March CPI and core CPI came in higher than expected, burying the rate cut narrative.
• The disinflation process is dead, with core CPI rising at a faster rate than previous months.
• Expectations for higher CPI in the coming months will likely lead to a surge in two-year yields and a stronger dollar.

Another hot CPI print in March just buried the rate cut narrative. The March CPI and core CPI report came in at 0.4% m/m vs. estimates for 0.3%. Meanwhile, the headline CPI came in at 3.5% y/y, hotter than estimates for 3.4%, with the core coming in at 3.8% y/y, hotter than estimates of 3.7%....

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