Producer inflation remained elevated in May, even as the overall year-over-year number eased slightly, according to Labor Department data released on Tuesday. The report adds pressure on the Federal Reserve, which is meeting this week and considering more aggressive measures to tame inflation. We now ... READ MORE >
Search Results for: inflation
Bond market update: Inflation’s toll on returns, investment and growth
Inflation is now the most significant factor in investment decisions. Until the Federal Reserve creates the conditions approximating price stability—defined as the core personal consumption expenditures deflator averaging 2% over a defined period—the economy will remain at risk. This will almost ... READ MORE >
U.S. May CPI: Inflation continues to broaden out on higher gas and housing costs
Inflation continued to broaden out across the American economy in May, rising by 8.6% annually and underscoring the urgency among central bankers to restore price stability through an increase in the federal funds rate and a drawdown in its $8.9 trillion balance sheet. Six months into the Federal ... READ MORE >
Inflation and gross margins—who is winning? Part 1: The transportation sector
RSM took a detailed look at gross margins across different peer groups in the industrials sector to see how each has fared during this time of high inflation. In this article—part of a series—we examine margins for the transportation sector. Here is what we found. The industrials sector played a ... READ MORE >
Bank of Canada raises interest rate to 1.5% to tame inflation
The Bank of Canada announced another 50-basis-point increase in its overnight rate on Wednesday, to 1.5%, while it continued to shrink its balance sheet, another aggressive step in its campaign to tame inflation. The move was expected given that the economy remains overheated, despite several rate ... READ MORE >
Personal spending and trade improved in April as inflation eased
American consumers continued to spend more in April as inflation showed signs of relief. The combination of higher incomes, excess savings and lower energy prices helped to alleviate some of the recent recession concerns. On top of that, the advanced goods trade deficit improved significantly on ... READ MORE >
Increased demand lifts defense technology companies amid inflation and supply chain issues
Executives in the defense technology ecosystem continue to experience rising costs and supply chain disruptions. However, growing international demand and technological innovation are driving optimism and investment for the future. The executives shared their perspectives recently in earnings calls ... READ MORE >
Rising inflation eases but Canada’s housing remains a concern
April brought a hint that inflation could soon peak in Canada. The Consumer Price Index rose at an annual rate of 6.8%, a slight increase from March, while all measures of core inflation continued to rise, according to data from Statistics Canada released on Wednesday. On a monthly basis, the increase ... READ MORE >
U.S. April Consumer Price Index: Peak inflation provides no solace
About the best one can say about the April inflation report is that year-over-year metrics appear to have topped while core inflation increased, and housing costs that are up 6.5% from a year ago are now a policy issue that needs to be addressed. The data inside the report reflects a shift in demand ... READ MORE >
The price of war: Risks around the inflation outlook
While we expect the annual inflation rate to peak this quarter as comparisons to the lower levels of a year ago wear off, the risk of rising prices will remain as the twin shocks of the Russia-Ukraine war and China’s coronavirus shutdowns endure. These price shocks will have the biggest effect on ... READ MORE >