Stronger dollar to put downward pressure on US imported goods prices in the near-term
The 0.2% m/m increase in February's consumer prices was enough at least to pull the US out of deflation after only one month, with the annual inflation rate rebounding from -0.1% to 0.0%. But there is a good chance that …
The 0.2% m/m increase in February's consumer prices was enough at least to pull the US out of deflation after only one month, with the annual inflation rate rebounding from -0.1% to 0.0%.
But there is a good chance that base effects will drive that annual inflation rate back into negative territory for most of the first half of this year.
Capital Economics notes .....
In the near-term, the stronger dollar will continue to put downward pressure on imported goods prices. But going in the other direction, rising labour costs will put upward pressure on core services prices.
As the dampening effect from the stronger dollar fades in the second half of this year, we would expect to see core inflation gradually strengthen.
By the first half of 2016, we anticipate that it will climb back to the Fed's 2% target, prompting a more aggressive monetary tightening that either Fed officials or the markets currently expect.
Gold prices edged lower on Monday as stronger-than-expected U.S. nonfarm payrolls data dampened hopes for aggressive Federal Reserve rate cuts, bolstering the dollar. Spot gold slipped 0.1% to $2,686.32 an ounce, while F…
On-chain data shows BTC whales moved 10000 BTC from Crypto exchanges. This indicate accumulation of BTC by whales. Japanese public company Metaplanet buys another 1 billion yen worth of Bitcoin. According to Santiment, t…
Personal income increased by 0.2% month over month In August, which was less than the 0.4% market forecast and less than the 0.3% growth in July. For the third consecutive month, real personal disposable income increased…
