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VCSC Daily - Better-than-expected CPI supports equities

Market Commentary

26 Mar 2012

Both markets extend gains thanks to better-than-expected CPI – Although a slowdown in national CPI was expected and partly priced in, better-than-expected March CPI at 0.16%MoM, supported the indices on the first day of the week. The CPI slowed to the lowest MoM pace in 21 months. Removing last year’s unseasonably high March CPI, the YoY CPI figure dropped nearly 220bps to 14.2%. Though the direction inflation has taken is encouraging, it may still be too early call it a full victory.

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