The folks calling US inflation only transitory are going to have to fight off those disagreeing today if the consensus call for the data is correct.
There is a good amount of data due from the US, amongst it is the PCE price index
- due at 8.30 am US ET
- which is 1230 GMT
Reuters polling have expectations at 0.6% m/m and … drum roll please …. 2.9% y/y
As background to this, the US Federal Reserve uses the PCE (personal consumption expenditures price index) as its preferred inflation measure. The Fed’s target is 2%.
Dallas Fed head Kaplan has been calling for a tapering discussion for months now, Vice Chair Clarida seems to be getting on board (for a discussion). Kaplan may get some vindication today.