CPI is expected to come at 2.9%, down from 3.4% in December. and core is expected to come at 3.7% from 3.9% in December.
- This will be mostly supported by auto price declines impacting core goods, energy, and food.
- Services, super core, and housing are not expected to have any significant improvements M/M this month.
As Powell mentioned at some point, goods will stop significantly impacting inflation at some point, and more improvement in services will be needed to come to the target.
March rate cut has been now almost completely priced out, and it is now expected to come between May and June.
