Tonight's CPI Release Awaits: Surprise Upside Could Shift Fed's Policy Trajectory

US CPI Data Set for Release Tonight

At 21:30 Beijing time tonight, the US will release its January CPI figures. The market generally expects the year-over-year rate to decline from 2.70% to 2.50%, while the monthly rate is expected to remain unchanged at 0.3%.

Insight from Goldman Sachs Analyst

Goldman Sachs analyst Kay Haigh noted that while there is currently room for two more Fed rate cuts, an unexpected rise in inflation could shift the policy outlook.

Potential Market Impact

• Higher-than-expected data could boost the dollar and pressure equities
• The inflation print will be critical in shaping the Fed's next move
• Investors should remain cautious and prepare for potential volatility