Morgan Stanley Sees ‘Spicier’ CPI as Inflation Week Kicks Off

Tuesday’s consumer price index report will be a “spicier” set of figures, the first in a series of readings this week that will feed into the Federal Reserve’s preferred measure of inflation, according to Morgan Stanley’s global head of macro strategy.

“Ultimately it matters how all of these inflation numbers that we get this week come together to form a PCE inflation forecast,” Matt Hornbach said Monday on Bloomberg Television’s Surveillance. “So we’ve got CPI, PPI, import prices. All three of them contribute in their own ways to what we end up getting in PCE, and of course that’s the important number for the Federal Reserve.”