UBS: All eyes on US CPI today

Union Bank of Switzerland’s analysts point out the release of consumer price inflation in the upcoming US session is going to be the key economic release for the day.

Key Quotes

“Labor costs have been rising. Labor is the most important part of inflation. However, there are restraints on CPI. Most of the index is not driven purely by market forces (the largest component is a made-up price). Profit margins may absorb the higher labor costs.”