The good news is that US inflation is under control. The bad news…it isn’t falling quick enough to temper rate rise expectations. As we wrote last week, inflationary is shifting from goods to services, but services inflation takes more time to trend lower. Core inflation in the US was up 0.4% in January, in line with expectations, but higher than December.
Quicknote: US inflation is under control, but…
The good news is that US inflation is under control. The bad news…it isn’t falling quick enough to temper rate rise expectations. As we wrote last week, inflationary is shifting from goods to services, but services inflation takes more time to trend lower. Core inflation in the US was up 0.4% in January, in line with expectations, but higher than December.