CPI Preview: As Inflation Keeps Cooling, Here Are The Three Main Things To Watch

One month ago, in our CPI preview report, we asked rhetorically that "Inflation Is Cooling But Will It Be Enough?" Well, as we all so vividly recall, when November CPI print of 7.7% YoY missed expectations of 7.9% (and was down from the 8.2% prior, a 50bps decline in the YoY reading that was the second largest of this cycle), it was more than enough to spark the biggest short squeeze in the past decade, sending the S&P soaring 5.5% higher while the nasdaq added 7.5% and the Russell was up 6.1%.

So fast-forwarding to today, what should one expect from the final, and most important scheduled macro event of the year, and are markets about to have another historic melt up (or down)?

To answer that question, first here is a look at the consensus view, courtesy of Newsquawk: