Inflation could once again be a market-moving concern this week when September data are released, according to Bank of America. The financial firm’s trading desk said in a Monday morning note that the market-implied stock movement around Thursday’s consumer price index release is now more than 1%, with the realized value over the past three months being 0.7%. He said it was. In general, inflation has been trending lower in recent months, and investors and the Federal Reserve appear to be paying more attention to a potential slowdown in the labor market. But better-than-expected jobs data released last week shook the consensus outlook for the economy. “After the explosive jobs report, the CPI is no longer ‘irrelevant’. …Stocks should be able to withstand small upside surprises in inflation, but larger surprises will result in more volatility,” Bank of America Notes said. Long-term Treasury yields also rose on Monday, another sign that concerns about inflation could rise again. The CPI report is expected to be released before the opening bell on Thursday. Economists surveyed by Dow Jones expect the CPI to report a 0.1% increase in September and a 2.3% increase from 12 months ago. Core CPI, which excludes volatile food and energy prices, is expected to increase 0.2% from the previous month and 3.2% from a year ago.
