U.S. CPI Preview: Inflation Pressure Still Concentrated in Food and Energy, Middle East Energy Volatility Key to Changing Landscape

Odaily Odaily News Jason Pride, Head of Investment Strategy and Research at Glenmede, stated that U.S. inflationary pressures are expected to remain concentrated in the food and energy sectors, with core CPI likely to moderate on a month-over-month basis. The key question is whether this pattern will begin to shift, especially if energy price volatility related to the Middle East persists. Any signs of spreading price pressures would further solidify the Federal Reserve's cautious policy stance; conversely, a benign report in line with expectations would support the judgment that "current inflationary pressures are temporary, supply-driven rather than demand-pulled." (Jinshi)