Tag: US Inflation

The Federal Reserve is expected to cut its benchmark interest rate by 25 basis points this week. This has been the baseline market assumption since Chairman Jerome Powell's speech at Jackson Hole, in which he proclaimed, “the shifting balance of risks may warrant adjusting our policy stance." The question is, how many dissenting votes will Powell face in this meeting?

The Producer Price Index for Final Demand (PPI-FD) declined 0.1% MoM in Aug, bring the annual increase down to 2.6% from 3.1% in the previous month.

US headline CPI down to 2.9% in July, lowest since March 2021

Inflation in the US cooled off further to 2.5% over the year to the end of June, according to the latest reading of US Bureau of Economic Analysis's PCE price index.

US PCE price index showed 0% monthly inflation in May, bolstering market narrative that consumption sentiment has weakened in Q2 and helped easing inflationary pressure in the US economy.

US PCE inflation held at 2.7% YoY in April 2024 while core inflation maintained its pace at 2.8% for the third months,

US CPI rose 3.35% in the year to April, as expected by analysts. Meanwhile, core CPI, which strips out prices of food and energy, increased 3.61%, also as market expected.

Core CPI: 3.86% YoY (Dec: 3.93%) | 0.39% MoM (0.28%)

Core CPI inflation continues to decelerate to 3.93%

Ricardo Reis, economics professor at the London School of Economics, explained that there were telling signs that the increase in cost of living started ealry-2021 was not a "transitory" phenomenon.