Inflation’s impact on the stock market
Stocks can generally act as a buffer against the long-term impacts of inflation.
The consumer price index (CPI) sent mixed signals last week while the retail sales release left more to be desired. There are positive aspects to most of the data, but that is coming against the backdrop of heightened geopolitical uncertainty and the beginning of the removal of Fed policy accommodation.
• The core CPI rose by less than expected for March
• Consumer expectations remain low but improved in early April
• Little change expected for housing starts
• Existing home sales likely slowed further
• Leading economic indicator gains are slowing, but still moving higher
View our informative commentary on the economy and financial markets – and find out what we’re watching for the week ahead: