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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.
US DATA
The 80.6 reading for ISM Services Prices in May, and the 88.0 for Manufacturing, suggest a Y/Y CPI rate that is set to head further toward 5% in the next few months (the last time we saw such high ISM Price readings was in 2008 when CPI Y/Y peaked at 5.6%). See chart below.
- Of course the 2008 spike (and to some extent the current one) was led by higher commodity prices, particularly oil, and the latter half of the year saw the beginning of one of the biggest economic shocks in history.
- Main takeaway is that a 5+% CPI print this summer isn't out of the question - which actually may not be too much of a shock given the 4.2% April reading and 4.6% for May expected in next Thursday's CPI report. And as long as it proves "transient".
Source: ISM, MNI Calculations
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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