Pinebrook’s expectation for core CPI tomorrow is in-line with the consensus of .27% MoM. There is no real utility in projecting a number within a few hundredths of a point, as this is simply random number generator noise that is priced in for past activity.
· Expect to see less used car inflation.
· More core-goods inflation.
· Less core services inflation.
The hoped-for value add of this inflation commentary is to explore nuances for a forward-looking signal related to evolutions in the growth and inflation matrix and the subsequent policy response.