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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.
EMERGING MARKETS
- In the chart below, we look at the ranking of CPI inflation rate (latest print) in the EM market, with also the 3M change in order to see if inflation has been accelerating or decelerating.
- As expected, Turkey is currently experiencing the highest rate of inflation; CPI inflation surged to 16.2% in March, up 1.6 ppts from December.
- Brazil and Mexico are the two other countries where the inflation has been accelerating significantly in the past 3 months, by 1.6 ppts and 1.5 ppts to reach 6.1% and 4.7%, respectively.
- Interestingly, CPI inflation has been decelerating in Indonesia and South Africa, down 0.3 ppts in the past three months to 1.4% and 2.9%, respectively.
- In the CEE region, Hungary remains the place to experience the sharpest increase in inflation, up by 1 ppt to 3.7%. NBH policymakers have recently mentioned that CPI inflation was very likely to break the upper tolerance band (4%) and reach nearly 5% in the coming months; however, they expect the spike in inflation to be temporary and inflationary pressures should ease in the second half of this year.
- In the US, we saw that March CPI inflation reached 2.6%, up by 1.2 ppts since December.
- Overall, we have heard in most of the economies that policymakers expect the spike in inflation to be temporary, communicating to markets that central banks will leave their policy rates unchanged in the coming months in order to stimulate growth even though the inflation rate may diverge from the traditional central bank's target.
Source: Bloomberg/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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