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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
DATA REACT
The Atlanta Fed's sticky price indices show very strong headline CPI pressures, but depict core inflation as relatively tame.
- These indices sort CPI components "into either flexible or sticky (slow to change) categories based on the frequency of their price adjustment".
- The flexible CPI was up 13.7% Y/Y (a weighted basket of items that change prices relatively frequently) - but the 12-month figures for both sticky core CPI and sticky headline CPI were actually flat in June vs May, rising by 2.6% and 2.7%, respectively.
- Those latter figures are merely back to where they were pre-pandemic in 1Q 2020, so arguably not as much price pressure as appears to be the case in the main CPI data.
- Though we note sticky inflation ex-shelter continues to hover above 3% Y/Y, which hasn't happened since late 2008/early 2009. This suggests that fairly weak shelter pressures have been holding back overall inflation from rising further - and that higher shelter prices in the latter half of the year could add fuel to the fire.
Source: Atlanta Fed, MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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