CPI Report Expected to Show Inflation Still Elevated But Slowing
-
Tomorrow's consumer price index (CPI) report for December will be closely watched by markets to gauge the inflation outlook.
-
Economists expect a mixed report - headline CPI ticking up but core CPI easing - indicating ongoing but slower inflation.
-
Markets are optimistic that inflation has peaked, allowing the Fed to soon cut interest rates, supporting stock prices.
-
However, the Fed's 2% inflation target likely remains out of reach until late 2023 at the earliest.
-
Multiple inflation measures show a downward bias, but some near-term volatility is still possible before a clear disinflation trend emerges.