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BA/ML economists Ethan Harris and Aditya....>

US VIEW
US VIEW: BA/ML economists Ethan Harris and Aditya Bhave eyed the "new trendy
inflation measure" as the "NY Fed's CPI Underlying Inflation Gauge has gotten
much attention as it shows trend inflation accelerating while other "core"
measures have stalled. Policy rules using the CPI UIG measure suggest that Fed
rate hikes this year have been justified."
- "We think it is important to look at a basket of inflation measures; including
the UIG in that basket helps make the case for a reversal in reported measures
of inflation," they said.

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