Morgan Stanley executives expect that the consumer price data to be released this week will be "more explosive."

The Director of Global Macro Strategy at Morgan Stanley stated that the Consumer Price Index report on Tuesday would reveal a set of "more explosive" data, which is the first in a series of inflation-related data to be released this week, ultimately affecting the inflation indicators favored by the Federal Reserve. "Ultimately, the key is how all of this inflation data released this week collectively contributes to the forecast of PCE inflation," said Matt Hornbach on Monday. "We will get CPI, Producer Price Index, and Import Price data. All three of these in their own way impact the PCE we ultimately get, and PCE is of course an important data point that the Federal Reserve watches."