The monthly increase in consumer prices in the US was in line with expectations but the annual inflation rate came in 0.1 percentage points lower than expected. What is worrisome about the latest inflation print is that airfares and clothing inflation – the main drivers of inflation weakness in recent months – accelerated, but this time used car prices and prices for medical equipment were weaker than expected. It seems as if there is always something, and the Fed will have an increasingly hard time defending the current weak inflation data as “temporary”.
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(Almost) Daily Market News Update
- Published:
13 Jun 2019 -
Author:
Joachim Klement -
Pages:
6
The monthly increase in consumer prices in the US was in line with expectations but the annual inflation rate came in 0.1 percentage points lower than expected. What is worrisome about the latest inflation print is that airfares and clothing inflation – the main drivers of inflation weakness in recent months – accelerated, but this time used car prices and prices for medical equipment were weaker than expected. It seems as if there is always something, and the Fed will have an increasingly hard time defending the current weak inflation data as “temporary”.