Consumer Price Index report will reveal whether inflation remains rugged: This week, investors will discover whether Wednesday’s release
of the Consumer Price Index will show the persistence of price pressures. Will inflation face another “bump” along the way?

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After 2023 saw a decline in inflation rates, 2024 showed that prices appeared “steady,”
with inflation rates tending to rise again over the past few months.
This includes the annual inflation rate for the Consumer Price Index at 3.5% in March,
which has risen for the third consecutive month. Before that, the Producer Price Index data will be released on Tuesday,
showing price changes for wholesalers, which can be an indicator of upcoming price changes at the consumer level.

Some Federal Reserve officials have described the recent rise in inflation rates as “rugged,”
considering the spike in prices as a signal of the necessity

to keep interest rates at their current high levels for decades.
Another high inflation reading could weaken hopes for a cut in interest rates.

Federal Reserve

officials from the Federal Reserve have expressed the need to be cautious before cutting interest rates.
Federal Reserve Governor Michelle Bowman stated she does not expect cutting interest rates in 2024 would be appropriate,
while Dallas Federal Reserve President Lorie Logan said it is still too early to consider reducing interest rates.
Meanwhile, data released on Friday pointed to a jump in consumer inflation expectations,
although the sharp decline in American consumer confidence added to the evidence that the economy is losing momentum.
The markets are still pricing in September as the start of the easing cycle.

Investors will also hear from several Federal Reserve officials this week, including Governor Jerome Powell,
who will speak to the Foreign Bankers’ Association in the Netherlands on Tuesday.
Federal Reserve Vice Chair Philip Jefferson, Cleveland Federal Reserve President Loretta Mester,
Atlanta Federal Reserve President Raphael Bostic,
and Philadelphia Federal Reserve President Patrick Harker is also on the calendar this week.

Consumer Price Index report will reveal if inflation remains rugged.

Consumer Price Index report will clarify whether the inflation path is still rugged

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