Further responses to the US March CPI report - JPM revise their inflation forecast higher

Adam and Greg had the US March CPI report covered Tuesday US time:

• US March CPI +2.6% y/y vs +2.5% expected
• US dollar comes under pressure with inflation not as hot as feared

RBC are alert to the potential for inflation to surprise to the topside:

• US CPI, keep calm? RBC warns the risk is of 5%+ inflation ahead.

Meanwhile, JP Morgan say they see signs of a broad-based reflationary trend building and that today’s (i.e. Tuesday's MArch inflation data) report reveals a rebound in core services prices as the US economy reopens. Hence:

• we revise up our 4Q2021 core CPI forecast by 0.3% to 2.1% y/y
• but still expect to see core CPI finishing 2022 at 2.2% y/y