10 August 2022
If you are covering the latest US inflation figures, please find below a comment from Richard Carter, head of fixed interest research at Quilter Cheviot:
“The latest US inflation print is good news for both consumers and markets as for the first time in a while the number came in lower than expected on the month. Investors will be hoping that this is the beginning of the end for this inflationary period and that it is the start of a downward trend in CPI. It may be too early to declare victory yet as much of it will depend on the outlook for energy costs, but this is very much a step in the right direction.
“Still, the Federal Reserve will be cheered by the news, especially the fact that core inflation was also lower than expected. The Fed will still need to hike rates at their next meeting in September but this reduces the risk of another 75bps move and going forward we might just see markets act a little calmer than they have to date.”
