MNI BRIEF: Japan July Tokyo Core CPI Rises 2.2% Vs. June's 2.1%

MNI BRIEF: Treasury's Yellen: Inflation Moving To Fed's Target

MNI BRIEF: China State Planner To Increase Trade-in Support

MNI China Daily Summary: Thursday, July 25

MNI: PBOC Conducts CNY200 Bln via MLF Thurs; Rate Cut

MNI: PBOC Sets Yuan Parity Lower At 7.1321 Thurs; -1.92% Y/Y

Japan Tokyo Jul Core CPI +2.2% Y/Y

MNI JAPAN JULY TOKYO CORE CPI +2.2% Y/Y; JUNE +2.1%

EZ/UK Bond Supply Calendar: BoE Short APF Operation on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

JP Morgan say Recent Inflation Dynamics Justify 25bp Hike

SOUTH AFRICA
  • JP Morgan believe recent inflation dynamics, as contained in the May and April reports, combined with the global disinflationary impulse in non-core inflation, likely will suffice for the SARB to deliver a small hike.
  • FX sensitive items continue to exert upside pressures on core inflation, as explained by the further rise in vehicle costs, which drove the miss relative to JPM’s core forecast. JPM expect these forces to remain in play in coming months as earlier rand currency weakness filter through domestic prices, inadvertently negating the disinflation impulse from base effects.
  • They raise their full-year average core inflation forecast a tenth higher to 5.2%, with their base case now seeing it edging up to at 5.5% by December (from 5.3%).
  • Therefore, despite the rand rallying recently and load-shedding intensity being reduced, JPM look for an MPC that may debate between a hold and 25bp final hike, but probably side with a 25bp outcome.
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

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.