Goldman Sachs economist Alexandra Wilson-Elizondo said, “Today's CPI is mostly in line with expectations. On the surface, it is the result investors wanted, but it did increase the suspense over next week's interest rate decision sharply. 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, as well as the spread of commodity gains from energy to fields such as metals and agriculture. Today's inflation data does not eliminate the possibility of stronger price pressures in the future. All in all, today's data in line with expectations will allow the Fed to keep the interest rate hike option, but not be forced to act, so the market may pay more attention to Walsh's communications, energy prices, labor market data, and what will happen next, rather than what is being released today.”

Goldman Sachs economist Alexandra Wilson-Elizondo said, “Today's CPI is mostly in line with expectations. On the surface, it is the result investors wanted, but it did increase the suspense over next week's interest rate decision sharply. 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, as well as the spread of commodity gains from energy to sectors such as metals and agriculture. Today's inflation data does not eliminate the possibility of stronger price pressures in the future. All in all, today's data in line with expectations will allow the Fed to keep the interest rate hike option, but not be forced to act, so the market may pay more attention to Walsh's communications, energy prices, labor market data, and what will happen next, rather than what is being released today.”