American CPI: Vontobel fears inflation in services

American CPI: Vontobel fears inflation in services
American CPI: Vontobel fears inflation in services

(AOF) – “The most important event this week will probably be the publication of the American consumer price index (CPI) this Wednesday,” announces Felipe Villarroel, manager at TwentyFour AM, Vontobel boutique. “Headline inflation is expected to reach 0.4% month-on-month and 3.4% year-on-year, while core inflation is expected to stand at 0.3% month-on-month, i.e. 3.6% year-on-year. The manager emphasizes that these four figures are “slightly too high compared to the Federal Reserve’s 2% target.”

“If the actual numbers reach these levels, it will confirm that inflation continues to move at a sluggish pace and that progress has indeed plateaued” which “is obviously not what Fed officials want “.

“If the CPI numbers are in line with expectations, although high in the context of the Fed’s 2% target, they won’t move the needle too much for U.S. Treasuries.” if inflation is as expected, but “details show a deterioration in services inflation while goods continue to fall.”

Treasuries could then sell off, as the Fed “needs to see housing inflation and services inflation, in general, take over from disinflationary goods for the overall numbers to continue falling toward the target of the Fed in a sustainable manner.

-

-

PREV Ivory Coast: He defamed a private university and caused a financial loss of 257,201,000 FCFA
NEXT Here’s why bitcoin will never replace the dollar according to Morgan Stanley!