The producer price index (PPI) rose by 0.4% in January, following an upwardly revised 0.5% increase in December, making it the hottest two-month stretch of inflation since February last year. The main drivers were food and energy prices, which rose by 1.1% and 1.7%, respectively. Excluding those ... READ MORE >
U.S. inflation
Inflation accelerates in January amid concerns about rising expectations
Strong aggregate demand driven by job gains and rising real wages that in turn supported robust demand for services, rents and energy resulted in a 0.5% increase in the top-line consumer price index in January and a 0.4% advance in core inflation. A year-ago basis, the index increased by 3% and core ... READ MORE >
Market minute: The problem of sticky and stubborn inflation
The consumer price index for January, which will be released this morning, will most likely reaffirm that service sector inflation remains sticky and stubborn amid strong job and wage gains that are the primary drivers of aggregate demand. While housing inflation is easing, owners’ equivalent rent ... READ MORE >
U.S. households show robust gains on spending and income
Further evidence of robust household income and spending growth was on display inside the December U.S. personal income, spending and PCE report released on Friday. In a separate report, the Employment Cost Index increased by 0.9% in the fourth quarter with overall compensation increasing by 3.8% and ... READ MORE >
Inflation improvement stalled in December ahead of price increases
Stalled improvement in the December consumer price index appears to be the growing consensus among policymakers and investors as they await turn-of-the-year price increases. The expected adoption of expansionary fiscal policies, as well as greater restrictions on immigration, are pointing toward ... READ MORE >
Inflation ticks up amid seasonal factors and strong growth
The disinflation trend continued to stall in November, according to the most recent consumer price index data released on Wednesday. November marked the first month since April when overall CPI inflation grew by 0.3% monthly, or 3.7% annualized, well above the Federal Reserve's 2% target and a cause ... READ MORE >
Producer price index implies further disinflation
The lower-than-expected producer inflation report released on Friday should offset some of the upside surprises from the consumer inflation data released on Thursday. According to the Bureau of Labor Statistics, final demand inflation was unchanged in September, while the core reading grew more slowly ... READ MORE >
U.S. CPI: Further evidence of disinflation supports another rate cut
Further evidence of disinflation and the return of price stability are the primary takeaways from the inflation data released on Thursday as the consumer price index increased by 0.2% in September and by 2.4% on a year-ago basis. The primary catalysts for the modest increase in top-line inflation ... READ MORE >
American economy grew by 2.8% in second quarter, exceeding forecasts
The U.S. economy advanced at a 2.8% pace in the second quarter, exceeding RSM’s forecast of 2.4%, and was up by 3.1% on a year-ago basis. For the first half of the year, average growth was 2.1%, which should put to rest any arguments that the economy is about to fall off a cliff. Perhaps more ... READ MORE >
Further disinflation in the June consumer price index points to a Fed rate cut
Disinflation in energy and core goods has been the underlying inflation narrative over the past 18 months, and that continued to be the case in the consumer price index for June. Declines in gasoline prices, used cars and trucks, transportation and commodities caused a 0.1% decline in the top-line CPI ... READ MORE >