The US CPI report is due out on Wednesday and it should add to the case that price pressures are no longer a market preoccupation.
Goldman Sachs is out with its estimate of core CPI, which they peg at 0.16%, below the 0.2% unrounded consensus. They continue to see a decline in core goods, which are forecast down 0.11% m/m but that’s counteracted by services, up 0.23%. The main driver of that is owners’ equivalent rent, which is seen up 0.29% along with hotel prices up 0.50%.
Another driver is car insurance, which has made headlines for some eye-watering renewal rates hitting Americans. They saw there is still some catch-up working its way through the numbers and they see a 0.7% rise.
