Inflation inches up

July 22, 2014

The latest inflation numbers are out. According to the Bureau of Labor Statistics, the consumer price index rose 0.3 percent in June, following a 0.4 percent rise in May, mostly thanks to high gasoline prices. However, core CPI — which ignores volatile food and gas prices — was only 0.1 percent. CPI year-over-year, which is the number commonly referred to when talking about inflation, now sits at 2.1 percent (1.9 percent without food and gas).

Inflating CPI

June 18, 2014

Inflation is finally looking up. US consumer prices rose 0.4% in May — the biggest one-month jump since February 2013 and twice what economists expected. This rise  could have implications for the Fed’s two-day policy meeting this week, though Reuters reports the expectation remains the same: the taper will continue, but an interest rate hike is still months off.

U.S. consumer prices fall 0.1% in October

November 20, 2013

Consumer prices fell unexpectedly in October by 0.1%, in part due to falling gas prices, according to the Bureau of Labor Statistics. The Consumer Price Index has increased 1% over the last 12 months, the smallest such increase since October 2009.

The U.S.’s tame wage inflation

November 19, 2013

High unemployment and a slow economic recovery are keeping wages from rising quickly, Reuters reports on new labor cost data. “Wages and salaries, which account for 70 percent of employment costs, rose 0.3 percent in the third quarter after gaining 0.4 percent in the prior period,” Reuters writes. Here’s more: 

Europe’s battle against deflation, the market impact

November 13, 2013

Last week, Counterparties rounded-up the growing fears of deflation in Europe, as the European Central Bank’s surprise rate cut to stave off that threat.  Today, Reuters has more: