One step at a time, inflation is coming down, including the stickier parts of it. The September Consumer Price Index (CPI) report carried relatively high expectations, making a miss more likely. Nevertheless, apart from US Dollar bulls, there is good news for all – contrary to the initial reaction.
Inflation in the US, as measured by the change in the Consumer Price Index (CPI), held steady at 3.7% on a yearly basis in September, the US Bureau of Labor Statistics (BLS) reported on Thursday. This reading matched the August print and came in slightly above the market expectation of 3.7%.
"It ain't over until the fat lady sings" – the inflation opera is still on and running hotter than expected. The US Core Consumer Price Index (Core CPI) rose by 0.3% in August, beating estimates of the 0.2% increase seen in the prior two months.
Inflation in the US, as measured by the change in the Consumer Price Index (CPI), surged to 3.7% on a yearly basis in August from 3.2% in July, the US Bureau of Labor Statistics (BLS) reported on Wednesday. This reading came in above the market expectation of 3.6%.
Buy the rumor, sell the fact? That seems to the name of the inflation report game – at least in the short term. The US Dollar has been rising after an initial drop, as it had already declined beforehand, anticipating weak data.
Inflation in the US, as measured by the change in the Consumer Price Index (CPI), rose to 3.2% on a yearly basis in July from 3% in June, the US Bureau of Labor Statistics (BLS) reported on Thursday. This reading came in slightly below the market expectation of 3.3%.
Markets always want more – and this time they have received what they wished for. Not only has underlying inflation risen by only 0.2% MoM in June, but the yearly figure crashed to 4.8% YoY.
Inflation in the US, as measured by the change in the Consumer Price Index (CPI), declined to 3% on a yearly basis in June from 4% in May, the US Bureau of Labor Statistics (BLS) reported on Wednesday. This reading came in slightly below the market expectation of 3.1%.
It could have been lower – that is what many Americans may think. about the current level of inflation, which remains above average. However, for the Federal Reserve (Fed), it means no chance of a rate hike on Wednesday. That is what markets care about.
Inflation in the US, as measured by the change in the Consumer Price Index (CPI), declined to 4% on a yearly basis in May from 4.9% in April, the US Bureau of Labor Statistics reported on Tuesday. This reading came in slightly below the market expectation of 4.1%.
The Consumer Price Index released by the US Bureau of Labor Statistcs is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The purchase power of USD is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. Generally speaking, a high reading is seen as positive (or bullish) for the USD, while a low reading is seen as negative (or Bearish).
The US Federal Reserve has a dual mandate of maintaining price stability and maximum employment. According to such mandate, inflation should be at around 2% YoY and has become the weakest pillar of the central bank’s directive ever since the world suffered a pandemic, which extends to these days. Price pressures keep rising amid supply-chain issues and bottlenecks, with the Consumer Price Index (CPI) hanging at multi-decade highs. The Fed has already taken measures to tame inflation and is expected to maintain an aggressive stance in the foreseeable future.
