Daily Archives: Jul 10, 2018 at 08:06 am EDT

US Inflation’s Slow, Steady Rebound Looks Set To Continue

Thursday’s report on consumer inflation for June is expected to show that the recent firming trend will roll on. Analysts are looking for the year-over-year rate in headline prices to tick up to the fastest pace in over six years. It’s easy to overstate the rebound in pricing pressure, which appears dramatic after flirting with a mild degree of deflation as recently as 2015. But the rise from a low base still leaves inflation at a moderate rate relative to history. Nonetheless, the numbers clearly show that reflation is in progress — a trend that will increasingly ratchet up pressure on the Federal Reserve to tighten monetary policy.
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Macro Briefing: 10 July 2018

Trump picks Brett Kavanaugh, a solid conservative, for Supreme Court: The Hill
Ahead of Nato summit, Trump criticizes members on defense spending: Politico
China’s producer inflation accelerated to six-month high in June: Reuters
UK growth picked up in May: MNI
German economic sentiment suffers sharp pullback in July: Investing.com
Turkey may be the most vulnerable emerging market: NY Times
Lowest-rated tranche of inv-grade US corp bonds flash econ warning: Bloomberg
US consumer credit in May rose the most in six months: Bloomberg
10yr-2yr Treasury yield curve held below 30 basis points on Monday: