U.S. consumer price inflation likely accelerated in April, core rate to have remained soft

U.S. April consumer price inflation data is set to release tomorrow. According to a TD Economics research report, the headline inflation is likely to have accelerated two tenths to 2.1 percent, owing to a solid 0.4 percent seasonally-adjusted monthly rise.

A huge rise in gasoline prices of 10.2 percent is likely to have been the main driver. Moreover, the core inflation rate is expected to have come in soft again at 0.2 percent sequentially and 2.1 percent year-on-year, as a firm 0.2 percent rise in core services prices will probably counter a third straight monthly fall in prices in the core  goods segment.

“We expect OER to remain largely steady at 0.3 percent m/m and for the ex-shelter segment to improve marginally on a monthly basis”, added TD Economics.

At 19:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at 1.48325 more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex