Analysts at TD Securities are expecting the U.S. headline CPI to increase by two tenths to 2.1% in April on the back of a strong 0.4% seasonally-adjusted monthly gain.

• The main driver behind the monthly gain is another sizable jump in gasoline prices. Furthermore, we anticipate core CPI inflation to register another "soft" 0.2% m/m gain (2.1% y/y), as a firm 0.2% increase in core services prices will likely offset a third consecutive monthly decline in prices in the core goods segment (which we pencil in at -0.1% m/m).
• Largely subdued April PPI inflation suggests no mounting risks of pass-through to CPI, as weak trade services inflation indicate limited pricing power by firms.