US CPI Data Forecast: US Dollar bulls need hot numbers to remain

• Annualized Consumer Price Index in the US is expected to decline to 5.2% in March.

• Core CPI is forecast to edge higher to 5.6% YoY in March from February’s 5.5%.

• US CPI could influence Fed’s rate outlook and impact US Dollar’s valuation in a significant way.

The Consumer Price Index (CPI) data release for March, published by the US Bureau of Labor Statistics (BLS), is scheduled for April 12 at 12:30 GMT. The US Dollar (USD) has been struggling to gather bullish momentum despite having outperformed its major rivals for a couple of days following the upbeat March jobs report. Markets are still undecided regarding the Federal Reserve’s (Fed) next policy action and inflation developments could provide fresh clues. What to expect in the next CPI data report? On an annualized basis, the Consumer Price Index data is forecast to decline to 5.2% and the Core CPI, which excludes volatile food and energy prices, is expected to edge a tad higher to 5.6% from 5.5% registered in February. Meanwhile, the headline CPI data is seen rising 0.3% MoM in February, compared with a 0.4% increase reported in February. Similarly, the Core CPI is projected to increase by 0.4% in the same period, down slightly from 0.5% previously.