OctaFX | OctaFX Forex Broker
Open trading account

US CPI: Headline and core inflation are set to slow – Wells Fargo

Data released on Wednesday, showed the Consumer Price Index rose 0.1% in February against expectations of a flat reading. Analysts at Wells Fargo point out the strength in consumer price inflation won’t last. They see, both headline and core inflation, set to slow, giving the Federal Reserve more reason to ease further.

Key Quotes: 

“Consumer price inflation was a bit stronger than expected in February, increasing 0.1%. As expected, lower energy costs were a drag, but the headline was boosted by the largest increase in grocery prices in more than five years.”

“The collapse in oil prices stands to send inflation sharply lower in the coming months. We expect CPI to increase just 1.4% yr/yr in Q2. The drop is not expected to bleed over into core inflation, but the core is nonetheless likely to slow as prices for hotels and airfare decline amid a pullback in travel.”

“The disinflation ahead will give the Fed more reason to ease.”

Gold: The yellow metal warms investors – TDS

The BOE was the latest central bank to provide an emergency 50bp interest rate cut, while Italy will spend some 25bn euros to combat the virus. As ana
Read more Previous

ECB: 10bps depo rate cut and new lending measures expected – TDS

Strategists at TD Securities analyzes the three scenarios ahead of the European Central Bank decision, the first with Lagarde at the helm. They think
Read more Next
Start livechat