Inflation in Canada spiked far more than forecast in August, raising the prospect of another interest rate increase by the Bank of Canada. Even though inflation was expected to increase because of rising gas prices, higher rents and comparisons to the moderate levels of a year ago, the 4% ... READ MORE >
Search Results for: inflation
Low core inflation should keep the Fed from hiking rates
While we expect the Federal Reserve to hold rates unchanged on Wednesday, what its updated Summary of Economic Projections will look like remains less clear. More likely than not, given the recent robust economic data, we might see higher growth and inflation reflected in the summary along with an ... READ MORE >
August retail sales and producer inflation show a hot summer finish
The U.S. economy ran hotter than expected in August even as the momentum in spending slowed down. Retail sales and producer inflation came in significantly higher than forecast, while initial jobless claims were lower than the market consensus. But the downward revisions to retail sales in the prior ... READ MORE >
Energy pushes inflation higher but core prices remain grounded
Consumer inflation in August posted the biggest monthly increase in more than a year, driven mostly by the surge in oil and energy prices, the Bureau of Labor Statistics reported on Wednesday. But core inflation—which has more policy implications—grew slightly faster at 0.3% or 2.8% on a ... READ MORE >
Why the Fed should lift its 2% inflation target
We think that the Federal Reserve’s current cycle of rate hikes has peaked at a range between 5.25% and 5.5%. While inflation stands well above the Fed’s official 2% target, we think that because of the economic and political shocks since the pandemic, the Fed will raise its inflation target in the ... READ MORE >
Personal spending grows hot in July as inflation stabilizes
American consumers remained in a position of strength on spending and income growth this summer as inflation stabilized further and the labor market stayed resilient. July's personal spending surged by 0.8% while personal income grew by 0.2%, the Bureau of Economic Analysis reported on Thursday. With ... READ MORE >
Canadian inflation ticks up but underlying data may bode well for interest rates
Canada’s July inflation figures are a somber reminder that the road back to 2% will take time and patience. The headline inflation rate stands at 3.3%, above the 1-3% target range after months of sharp decline, according to data Statistics Canada released Tuesday. A 3.3% inflation rate is clearly ... READ MORE >
Near-target inflation fuels hope of soft landing for economy
Inflation stabilized further in July as the consumer price index data met expectations, the Bureau of Labor Statistics reported on Thursday. The slight uptick in annual inflation to 3.2% from 3.0% could be dismissed due to the base year effect, as inflation has come down fast from a peak in June last ... READ MORE >
New data points to further economic slowdown and disinflation
Economic data released on Tuesday suggested that the economy is continuing to slow as the labor market loosened, price gains eased and manufacturing contracted in June and July. Indicators came in lower than expected, implying that while the economy has remained resilient, it has lost some ... READ MORE >
Job and producer inflation data raises soft-landing hope
Data on jobless claims and producer inflation came in lower than forecast on Thursday, giving mixed signals on the Federal Reserve's rate trajectory. The Fed is heading toward a pivotal period when disinflation and a still-resilient economy are giving more hope on the probability of a soft ... READ MORE >