January CPI Preview: Are We Facing an Inflationary Shock?
Shelter inflation shows signs of gradual decline. Additionally, sticky inflation excluding shelter seems to be easing. However, expectations from the Michigan survey point towards a looming inflationary shock influenced by tariffs in the upcoming CPI report. This dissonance creates uncertainty about future trends. Investors should prepare for market reactions based on these economic signals. Understanding how inflation dynamics play out will be key to navigating the financial landscape ahead.