As April’s Consumer Price Index (CPI) showed signs of inflation moderating, the S&P 500 (^GSPC) and NASDAQ Composite (^ICIX) reached record highs. Rabobank Senior Cross-Asset Macro Strategist Christian Lawrence joins Catalysts to discuss the latest CPI print and what it could signal for the current inflationary moment.
Following today’s record highs, Lawrence says, "The sensitivity to data releases is going to continue." However, he does warn of pressures like shelter inflation that will continue to challenge households nationwide.
He adds, "In order to see a real slowdown in inflation particularly, it’s the services measure that we really need to focus on…Without that easing, without seeing consumption start to slow, we’re not going to get that 2% target." He believes that the inflation won’t return to 2% in the next few years as domestic production and trade barriers remain key factors in the economy.
"When it comes to shelter inflation, I don’t see much relief in the coming months whatsoever. And that’s going to keep that core services measure higher," Lawrence explains. He says the housing market is deadlocked as homeowners are largely unwilling to sell amid high mortgage rates. In addition, he says that rental inflation will not fall back to pre-pandemic levels.
As all eyes are on the Federal Reserve’s next interest rate decision, Lawrence breaks down the likelihood of cuts and the long-term health of the economy.
About Yahoo Finance:
Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.
– Get the latest news and data at finance.yahoo.com
– Download the Yahoo Finance app on Apple (https://apple.co/3Rten0R) or Android (https://bit.ly/3t8UnXO)
– Follow Yahoo Finance on social:
X: http://twitter.com/YahooFinance
Instagram: https://www.instagram.com/yahoofinance/?hl=en
TikTok: https://www.tiktok.com/@yahoofinance?lang=en
Facebook: https://www.facebook.com/yahoofinance/
LinkedIn: https://www.linkedin.com/company/yahoo-finance
#CPI #inflation #yahoofinance