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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.
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We have started to see factors that have been disinflationary become less so recently, such as supply chain pressures, shipping and some commodities. While oil and some food prices, such as rice, are rising again. It will be important to monitor these indicators as July was a mixed month for inflation developments (see MNI Inflation Moderation Slows In July), and preliminary August Spanish CPI inflation rose to 2.4% from 2.1% due to higher fuel prices.
- The Federal Reserve of NY’s global supply chain pressure index rose for the second consecutive month to -0.9 in July, the highest since the start of the year. Supply chain issues continue to ease but at a slower rate.
- Shipping rates are also declining at a slower annual pace, as indicated by the Baltic Freight Index, as well as most non-energy commodity prices. The Baltic Freight Index is up over 10% m/m in August to be down around 18% y/y after -50% in July. Base metals, iron ore and wool are all down on the month in August.
- Average Brent crude prices though rose in both July and August which will add pressure to fuel prices. Australian petrol prices were their highest in over a year in the latest week. Japan has already announced it will extend its petrol subsidies to the end of the year from September to keep pump prices below JPY180/L.
OECD CPI y/y% vs Brent crude y/y%
Source: MNI - Market News/Refinitiv
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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