Key inflation, spending and income data released on Friday should make the Federal Reserve's so-called dovish rate hike of 25 basis points in March a lot more reasonable by now. It also reaffirmed our call that the end of the hiking cycle is only a couple of months away. While the data ... READ MORE >
Search Results for: inflation
Canada inflation slows in February
Canada's inflation plunged to 5.2% from 5.9% on a year-ago basis in February as comparisons to last year’s elevated numbers kicked in, Statistics Canada reported on Tuesday. Prices spiked during the same period last year because of supply chain disruptions and the war in Ukraine. Inflation ... READ MORE >
How many jobs need to be sacrificed to tame inflation? Cost is rising, RSM models show.
Events are outpacing the best-laid plans of policymakers. The current turmoil in the financial sector will place constraints on the Federal Reserve’s efforts to restore price stability. Our research indicates that the Fed, facing persistent inflation, will for now have to accept a ... READ MORE >
Retail sales and producer inflation fell in February
Retail sales dropped in February after surging in January, while producer inflation fell unexpectedly on the month, signaling easing demand pressures. Still, looking underneath the top-line numbers and through seasonal fluctuations, spending at retail stores remained solid. Wednesday’s ... READ MORE >
February CPI: Balancing price stability vs. financial stability as inflation remains elevated
Inflation in the United States accelerated modestly in February, increasing by 0.4% on the month and by 6% on a year-ago basis. It was a similar reading in the core number that excludes food and energy, with prices in that sector rising by 0.5% on the month and by 5.5% compared to a year ago, ... READ MORE >
Bond market shows a shift in inflation expectations
In the first weeks of the year, financial markets have gone from anticipating a near-term end to the Federal Reserve’s price stability program to the realization that the Fed is not yet done. The S&P 500 increased by 9.3% through Feb. 2 as part of this broad expectation that the Fed would pause its ... READ MORE >
RSM revises its Fed call as inflation proves sticky
The common thread between the inflation reports for January was a reacceleration in service-based inflation that is proving sticky and is not likely to abate enough for the Federal Reserve to pull back on interest rate increases. For this reason, we are changing our call on the path of monetary ... READ MORE >
Canada’s annual inflation slows again, yet Bank of Canada’s work is not done
Canada’s inflation continued to decelerate on a year-ago basis for the seventh month in a row as the Bank of Canada’s rate-hike campaign to slow down the economy showed more results. The consumer price index rose by 5.9% from 12 months ago in January, down from 6.3% in December, and lower than the ... READ MORE >
Jobs and inflation data show a still-strong economy
Both producer inflation and jobless claims came in stronger than expected in the most recent government reports released on Thursday. The data adds further pressure on the Federal Reserve as it aims to steer the economy toward a soft landing. With strong data accumulating, current conditions ... READ MORE >
Inflation grew faster in January, bolstering the case for more rate hikes
Inflation accelerated in January, bolstering the case for the Federal Reserve to continue raising interest rates at its next two meetings. January’s Consumer Price Index increased by 0.5% on the month, rising from a 0.1% increase in December, and by 6.4% on a 12-month basis, the Bureau of ... READ MORE >