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If crude oil stays above 70 for 30 days, CPI goes up 0.6% on top of what is is now, so it would most likely be 3.2-3.4% in the report
What happens when market has to price in rate HIKES?
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>>61926775
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Fed usually ignores volatile short term inflationary pressure, like oil spikes, when it comes to analyzing CPI data. It has pretty minimal effects on long term inflationary pressure since the price usually reverts back down to typical market. That said, it could dissuade them from lowering rates. I just don’t think they will raise rates off oil spikes unless they foresee this being a longer term issue, but they would wait to make that call anyway.