BOOM: 0.5% CPI Buries Hopes For More Fed Easing, Initial Claims Tick Back Higher

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The numbers are out:

Boom: Headline CPI of 0.5% screams stagflation. That’s a major jump from -0.2% in the previous month, and it’s much hotter than the 0.2% analysts had expected.

Meanwhile, initial claims of 408K is a tad weaker than the 400K analysts had expected, and a revised 399K.

Stocks are getting crushed this morning.

Original post: Two big numbers coming up:

Initial jobless claims are expected to come in right on 400K, up slightly from last week’s 395K.

This is extremely important high-frequency data, and will give us a sense of labour market behaviour during the centre of the recent financial market storm.

Also coming out at the same time: CPI, which is expected to rise 0.2%.

Ex energy it’s also expected to be up 0.2%.

Yesterday’s PPI was hotter than expectations. If this number doesn’t catch up, that doesn’t augur well for profit margins.

If this does come in hot, Bernanke is in more of a bind with respect to further easing.

So someone is probably going to be in a bind either way.

Numbers here at 8:30 AM ET.