US CPI preview: A rebound is expected in both the core and headline - Wells Fargo

On Friday, in the US, the Consumer Price Index will be released. According to analysts from Wells Fargo, the index will show a rise of 0.2% (both core and headline). They explained that the decline in March was due to one-off factors. 

Key Quotes: 

"Gasoline prices played a large role in March’s 0.3 percent decline in the headline CPI. That said, the core CPI also unexpectedly declined in March as consumers paid less for wireless telephone services on the month. Shelter and medical inflation also eased in March, which usually provide a greater lift to core services prices.”

“Core goods declined 0.3 percent on softer apparel and transportation prices. The decline in apparel prices looked to be payback from early outsized gains, but softness in transportation goods prices is unlikely to abate, particularly as the glut of used vehicles coming off lease this year weighs on vehicle prices.”

“We expect both the core and headline CPI to rise 0.2 percent in April as much of the softness in March could be attributed to oneoff factors, such as the drag from the unusually large decline in wireless services on core services inflation.”