- Prior +2.3%
- HICP +3.4% vs +3.3% y/y prelim
- Prior +2.5%
Core annual inflation is seen at 2.9% and that is a step up from the 2.7% reading in February. As higher energy prices bump up headline inflation, it will eventually also spill over to core prices down the road. That even more so the longer that this US-Iran conflict keeps up and the Strait of Hormuz remains in de facto closure.
For now though, the broader market mood is still one that is leaning more towards being more optimistic. However, the reality of the situation remains that nothing will change until something changes on the Strait of Hormuz. Traders and investors are holding out hope but is it only a matter of time before it all comes tumbling down?
