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Mohamed A. El-Erian notes that following yesterday’s hotter-than-expected U.S. CPI data for April, market attention is now turning to this morning’s PPI numbers.
He explains that these figures will offer insight into the current strength of cost, price, and profit pressures moving through the economic pipeline. The consensus forecast is highlighted as a reference for expectations.
El-Erian has recently commented on central bank actions, noting Norway's unexpected 25bps rate hike after Australia's move. He has also assessed Jerome Powell's tenure at the Federal Reserve, highlighting the defense of Fed independence and acknowledgment of policy errors. These observations provide context to his current focus on U.S. inflation indicators.