Free Trial

BofA: “The Winds Of Transitory Inflation Became Crossed” In August

DATA REACT

BofA writes that "the winds of transitory inflation became crossed" in August:

  • Reopening categories saw "negative payback" (subtracting 26bp from core M/M), but "on the other hand, there were signs of continued shortage related pressures as price gains were seen across commodity items" including new cars, household furnishings, recreation commodities among others (adding 16bp to core).
  • That said, BofA saw "encouraging news from a persistent inflation perspective" with shelter ex-hotels prices and medical care services holding in, and "broad price pressures across other major services, with labor constraints and resilient wages potentially playing a role."
  • For Aug core PCE, BofA expects +0.34% M/M unrounded, 3.65% Y/Y.

To read the full story

Close

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.