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US: Inflation math inconsistent with economic math in Q1 2024
To say that inflation data during the first quarter of the year surprised us and the markets is clearly an understatement and by Tuesday of this week, with the higher-than-expected Producer Price Index (PPI) print for April, markets were clearly on edge as they were also potentially expecting a higher reading for the Consumer Price Index (CPI) on Wednesday. However, markets popped on Wednesday after a weaker than expected inflation number, up 0.3% compared to market expectations for a 0.4% print. Still, the core CPI came in as expected, up 0.3%, which means that core prices need to continue to come down. But we know ... (full story)