Interesting dynamic coming up: Ben Bernanke is going to give his big speech at 8:15 on monetary policy, and he may give a pretty clear outline of what he’s going to do to fight deflation.
And then at 8:30 the CPI comes out. And if some of that red-hot PPI ends up having filtered through to consumer prices, it’s easy to imagine a reading that’s hotter than folks are expecting.
Current consensus is for headline of 0.2% and core at 0.1%.
Anyway. We’ll see if he ends up talking over a number that should make him very uncomfortable.