July’s CPI and Core CPI rose by +0.0% and +0.1%, respectively. This result was slightly lower than the Bloomberg consensus of +0.1% for the headline number and +0.2% for the core. ON a year over year basis the headline CPI stands at -2.1%, while the core-CPI has gained +1.5% during the same time frame. Lower […]
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CPI
On the economics front this week we have a rather light calendar compared to last week, but not without some significant releases. The weeks starts out slow with no noteworthy releases on Monday, followed up by productivity and costs on Tuesday. The week closes with the hard hitting trifecta of July’s CPI, June’s Industrial Production, […]
Despite a rather hectic week of economic releases; earnings news will likely steal the show this week. Big names on the earnings calendar this week include Goldman Sachs, JPMorgan, Bank of America, Citigroup, GE, Intel, Google, IBM, and Johnson & Johnson. However, a recent mixture of good and bad economic news, including decreasing consumer sentiment, […]
Historically, gold has been an asset investors turn to in times of uncertainty, especially in regards to inflation. The same is true today. However, is the level of today’s gold prices justified? I believe the answer to that question depends on your belief in the Fed’s effectiveness and willingness to fight inflation. It is my […]
Energy prices are showing absolutely no signs of abating; those peak oil theorists may be on to something (at least in the short-run). We just don’t see oil prices coming down significantly without a considerable reduction in demand; through improved fuel efficiency or a considerable economic slowdown. Now that we have settled that, we want […]
The US isn’t alone when it comes to inflationary concerns. Chinese consumer prices continue setting new interim highs, and it is not going unnoticed. February’s CPI number came in at 8.7%y/y vs. 7.1%y/y in January. It is important to keep in mind this reading includes the adverse effects of severe winter weather and the Chinese […]
I was asked my views on the Chinese inflation situation today and came up with this short piece: The Chinese growth story is now sharing the spotlight with the country’s mounting inflation concerns. In January consumer prices rose 7.1%y/y; to a level not seen since 1996, a point when China was in the midst of […]
*Sorry for the delay in posting we were experiencing serious computer issues One of the questions on everybodys’ minds is how high would inflation need to go before the Fed would reconsider any further rate cuts. During the recent months’ we have seen increasing down side risks to the US growth forecast, while at the […]