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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
- Headline CPI bounced from 0.1% to 0.4% M/M (cons 0.2%) and core surprisingly nudged up from 0.57% to 0.58% M/M (cons 0.4%). The latter saw core CPI inflation extend to fresh cycle highs of 6.6% Y/Y, surpassing March’s 6.5%, with various regional Fed measures showing the same upward trajectory.
- The beat on core CPI was all about services (0.79% M/M from 0.58 which looks like the highest since the early 1980s whilst core goods barely registered with 0.02% from 0.46%.
- Familiar categories led this surprising core service strength, most notably OER (0.81% M/M from 0.71) and rent of primary residence (0.84% M/M from 0.74) hit new cycle highs vs some analysts looking for very slight moderation.
- Medical care services, a key component for non-shelter services with a weight close to tenants' rent, also accelerated to new cycle highs at 0.99% M/M (from 0.77) for 8.7% annualized on a 3month rolling basis.
- If there was a silver lining it was that goods inflation is cooling from improving global supply chains and USD strength, plus the fact that CPI rent measures are expected to catch up with a softer housing market in months ahead.
- However, yet another month of inflation not just failing to moderate more meaningfully but actually accelerating will be of renewed concern for the FOMC. More thoughts on potential rate implications here.
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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