Inflation data is to be the major concern from the US today, as prices on the consumer level to be released for the month of April. In speeches yesterday some fed members commented on inflation fears as they are concerned on elevated price levels, while the Fed's Chairman was worried about markets commenting that they are still far from normal!

Today we will be judging the extent of materialization to price pressures in the economy, to see how much food and energy prices which are on a high record breaking trend did to the economy, and judge how much producers can take off the heat of imported pressures as they struggle with low demand and shrinking profits.

From March the CPI is expected to have gained at the same pace of 0.3% while on an annul term inflation may have gained slightly on a lower pace with 3.9% after 4.0 percent in March. As for the more crucial reading, which is excluding the volatile imputes Core CPI is expected with an unchanged pace from March with 0.2% and 2.4% gains on the month and the year consecutively, which is rather comforting for the feds at this stage.

Still though, we saw how a depreciating currency and rising costs of energy and food price affected the United Kingdom shooting their inflation a notch below the upper acceptable range. The question is, are we to see that same elevated pressures in the US? Consumers have been struggling to maintain their living standards and they can not but spend on at least necessities, and since we saw the surprise jump in retail sales yesterday for April then money was spend and demand was seen and today we are to judge to what extent that affected the balancing act for the Feds.

Retailers in specific have indulged in huge discounts to lure consumers into shops as they have been complaining of rising gas prices which is offsetting their disposable income and spare capabilities to spend, so as the Feds are going out of their way with the American administration to set consumer to spend more by rebates that have started to be given and liquidity to encourage financial institution to give they cant at all tolerate rising prices to scare jittery consumers away as they try to get them to contribute the most with the 3/4 of the economy portion to stimulate growth once more.

Though job lies ahead of us and from what we are judging though spare capacity is rising and demand is low yet we saw oil averaging through the month around $113 in markets and food and staples prices have remained a call of social unrest with the upside trend its taking. So the US session will be dominated by rate expectation while the European session is to be dominated by the same pressures on the BoE as we digest their Inflation Report as their economy is struggling for balance and inflation is shooting the target as yesterday's ONS report showed it escalated to 3.0% in April.

So stay tuned dear reader the heat in markets in on the rise and you do not want to miss a beat as now it all counts in shaping the future of economies across the globe