On February 12th, reports show an inflation retreat in the U.S. Our CPI has fallen from 3.4% to 2.9% in the past year. The core CPI excluding food and energy costs, is forecast to have declined from 3.9% rate to 3.7% in December.
" Core inflation rates have generally been on a downward trend for a while now but generally doesn't necessarily mean linear or consistent – there could very well be bumps ahead,” said BeiChen Lin, investment strategy analyst at Russell Investments.
“Core inflation today is being primarily driven by shelter and wage-sensitive core services,” Lin added. “A well-documented lag between market rent prices and CPI rent measures suggests that we should see further easing in shelter inflation in 2024.”
But, he cautioned, “The core services side of the puzzle, however, might be trickier. Although wage inflation rates have generally been moderating, an unexpected repeat of the blockbuster January job creation in subsequent months could cause wage pressures to persist for longer than previously anticipated, ultimately delaying progress on core services inflation.”
https://www.usnews.com/news/economy/articles/2024-02-12/first-2024-inflation-reading-poised-to-show-retreat
No comments:
Post a Comment