Goldman Sachs: CPI largely in line with expectations, market need not focus on it

BlockBeats news, September 11: Goldman Sachs economist Alexandra Wilson-Elizondo said: "Today's CPI was basically in line with expectations, ostensibly the result investors wanted, but it does make next week's rate decision much more suspenseful. The challenge is that the data does not fully reflect some of the recent inflationary pressures, and there is little evidence that inflation is returning to target in the short term. The survey period for this report predates the latest round of energy price increases, and also predates the spread of the commodity rally from energy to metals and agriculture. Today's inflation data does not eliminate the possibility of stronger price pressures in the future. In summary, today's in-line data will let the Fed keep the option of raising rates, but not force it to act, so the market may next focus more on Warsh's communications, energy prices, labor market data, and what happens next, rather than what was released today."