Tomorrow's US CPI report is the highlight of the week on the US economic calendar. The White House is already out with some damage control saying the y/y figure will be 'high'.
The headline consensus is 7.3%, up from 7.0%. I think it would be a mistake to conclude the White House is signaling that it will be above the consensus.
As our friends at Newsquawk note: Last year, Biden also warned about high inflation before the CPI report release and it was lower than the consensus (though still directionally higher).
I think the market will be more focused on the m/m data, which is expected up 0.5%. Team Transitory wants to see that pace slow. The composition of the report will also be key, with many watching rents and looking for one-off skews.
