CPI raises rate hike expectations - ANZ

Ross J Burland FXStreet

Analysts at ANZ explained that for those, including a number of FOMC officials, that felt that the recent waning in US inflation was a transitory story, the August CPI will provide some relief.

Key Quotes:

"While the headline was affected by a hurricane- related boost to gasoline (6.3%), there were signs that some of the things that have been dragging are now stabilising, or at least slowing the pace of declines (lodgings away from home, wireless services, used car prices and medical-related prices etc).

More than one month’s data will be needed to confirm this of course, but if it continues, it would certainly provide some food for thought to bond markets around the prospects of future rate hikes."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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