Edit: Assumptions that usually land me in hot water are: long term rates at 4 % to 5 %, salary adjustments of ~ 4 % per year up to a cap (a cap equal to what a senior person in my industry is paid, has mimicked my salary raises surprisingly well actually), I assume a 20 % tax rate on earnings averaged over all accounts, then I seek to replace an «inflation» adjusted 100K at ~ 1.5 % per year (my real goal would be a CPI adjusted 100K into the future, which very likely would not be
driven by inflation, but no one has one of those crystal balls).
Just like with asset diversification, your stock returns are unlikely to consistently increase when inflation rises, but those returns won't likely be entirely
driven by inflation changes either.
Tax levies,
driven by inflation, are projected to grow at their fastest pace since 2013, according to district figures reported to the state comptroller's office.
Finally, in our view, opportunities do continue to present themselves over the short - to - intermediate term in fixed income; longer term, we are cognizant that there could well be some rate risk down the line
driven by inflation.
History suggests this reversal will be
driven by inflation fundamentals, and leave investors worse off than the 1994 «bond massacre.»
Not exact matches
While gold is often considered an
inflation hedge, Julius Baer said in a note, the fact that price pressures were being
driven by confidence about growth rather than dollar weakness and rising oil prices meant it was failing to react positively.
In terms of data, euro zone
inflation jumped to 1.9 percent in April from 1.5 percent in March
driven by energy prices, flash data showed Friday.
Euro zone
inflation jumped to 1.9 percent in April from 1.5 percent in March
driven essentially
by energy prices, flash data showed Friday.
Euro zone
inflation jumped to 1.9 percent in April from 1.5 percent in March
driven by energy prices, flash data showed Friday.
Core
inflation, which excludes food and fuel, is expected to be up slightly in December
by 0.2 %, primarily
driven by the rising cost of rent.
MANILA, May 3 (Reuters)- East Asian economies are expected to grow faster than previously thought this year, the ASEAN +3 Macroeconomic Research Office (AMRO) said on Thursday,
driven by strong domestic demand, solid exports and stable
inflation.
Inflation in the month was
driven by rising transport costs, with fuel a large contributor.
Inflation in the UK has shot up in recent months — hitting 2.9 % in May —
driven higher
by the slump in the value of the pound since Britain voted to leave the EU.
The report said the primary upward pressure on
inflation was
driven by higher costs for air transportation, gasoline and restaurants.
«I am concerned that the recent low readings for
inflation may be
driven by depressed underlying
inflation, which would imply a more persistent shortfall in
inflation from our objective,» Brainard told the Economic Club in New York.
Last month
inflation was
driven by pharmaceuticals, light trucks, and tobacco products.
Finally, much of the recent drop in
inflation expectations is being
driven by lower commodity prices, particularly oil.
«The fact the 10 - year is getting a magnetic pull towards 3 percent and going higher is being
driven by better growth and the higher
inflation that comes with it, and all the debt that's needed to finance the growth,» he said.
The market selloff started on Friday, largely
driven by investor fears about
inflation and what that might mean for Federal Reserve action on interest rates.
Inflation fears are not just
driven by improved economic expectations.
Over the long - term, market interest rates are
driven by economic growth,
inflation expectations and other extraneous factors.
For me the main information coming out of CPI
inflation data is that consumer demand relative to total production continues to be too weak to
drive up prices, something confirmed earlier this week
by the August trade numbers, which failed to suggest strong growth in domestic demand.
* MONDELEZ - QTRLY ADJUSTED GROSS PROFIT MARGIN WAS 39.4 PERCENT, DOWN 110 BASIS POINTS,
DRIVEN BY UNFAVORABLE MIX, HIGHER COMMODITY COSTS & FREIGHT
INFLATION Source text for Eikon: Further company coverage:
But just because you don't see wage pass - through to prices doesn't mean that full - resource utilization, as proxied
by low unemployment, won't
drive up
inflation.
Inflation is also likely to be fanned
by an anticipated pickup in economic growth,
driven by a $ US1.5 trillion tax cut package and increased government spending.
Upward forces
driving inflation were led
by price increases at the gas pump, for traveller accommodation and for air transportation
[158] Other causes include the rise in non-cash benefits as a share of worker compensation (which aren't counted in CPS income data), immigrants entering the labor force, statistical distortions including the use of different
inflation adjusters
by the BLS and CPS, productivity gains being skewed toward less labor - intensive sectors, income shifting from labor to capital, a skill gap -
driven wage disparity, productivity being falsely inflated
by hidden technology -
driven depreciation increases and import price measurement problems, and / or a natural period of adjustment following an income surge during aberrational postwar circumstances.
The price increase was also
driven by the reality that seafood
inflation, although moderated from where it was at the beginning of the year, was still elevated.
The Fear Trade, of course, is
driven by low to negative real interest rates — when
inflation erodes away at government bond yields — deficit spending, a weaker U.S. dollar and geopolitical uncertainty.
Economists at the U.S. - based bank, led
by Nupur Gupta, cut their estimates for
inflation - adjusted output for the fourth quarter of 2016, citing a sharper - than - initially - estimated fall in consumer sentiment and industrial production amid the demonetization
drive.
Driven by falling
inflation, real interest rates in Asia are at relatively high levels compared with the US.
Cooling US core
inflation this year was
driven by major one - off drops — especially the sharp fall in wireless costs due to changes in major pricing plans — as well as some moderation in a few key categories such as housing.
Instead, as coupons and maturity payments are linked to
inflation, index - linked gilt prices are instead
driven much more
by changes to
inflation expectations, and also the complex interaction between nominal interest rates and those
inflation expectations (real interest rates).
While some tell us that inflationary pressures are temporary and primarily due to bottlenecks in the energy sector, we have long argued that
inflation in all commodity prices is not a temporary supply issue, but
driven by the global imbalances.
As I write in my new weekly commentary, the rise in U.S. yields has been
driven by higher
inflation expectations.
The drop in
inflation was
driven by a sharp deceleration in prices paid for services.
Nominal interest rates are
driven by real growth (labor and labor productivity),
inflation and the term premium.
BEIJING (AP)-- China's
inflation accelerated to 2.3 percent in February,
driven by a jump in food prices, but fell below the government's official target for the year.
Unfortunately, the gains haven't been
driven by signs of economic improvement, firming
inflation or rising earnings.
While equity market movements are
driven largely
by the strength of economic growth, fixed income markets hinge on changes in interest rates and
inflation.
The P / E for the stock market is
driven by the trend in and level of the
inflation rate.
Instead, major upward trends in interest rates are
driven primarily
by rising
inflation expectations, or, to put it more aptly,
by declining confidence in money.
The turn towards more volatility was
driven by a belief that, for the first time in the post-crisis era,
inflation was returning.
There is quite a strong argument that in spite of its deployment as a form of monetary
inflation QE was empirically deflationary via numerous channels:
by encouraging cash hoarding
by savers in the absence of adequate income;
by skewing wealth and income towards those most likely to hoard it;
by an inter-temporal Ricardian equivalence; in your own Austrian terms
by driving excess investment to the upper reaches of the production structure, creating excess capacity and malinvestment;
by skewing the incentives of company directors towards short - term speculation;
by perpetuating the survival of zombie entities;
by encouraging investment in unproductive assets.
That large rises in the gold price are NOT primarily
driven by increasing fear of «
inflation» is evidenced
by the fact that the large multi-year gold rallies of 2001 - 2006 and 2008 - 2011 began amidst FALLING
inflation expectations.
The 10 - year treasury yield flirted with the 3 % — levels rarely seen in the last five years —
driven by central bank tightening and
inflation risks.
Though hyperinflations are typically
driven by the inevitable financing of fiscal deficits
by money creation, you will not find sustained
inflation without sustained fiscal irresponsibility.
However, bond yields have been mostly
driven by US developments, where bond yields appear unusually low against a background of strong growth, rising
inflation and increasing short - term interest rates.
In continental Europe, Canada and Japan, economies have been characterised
by very low rates of both economic growth and
inflation (
driven importantly
by very low rates of wages growth).
Over the longer term,
inflation can be expected to be
driven more
by domestic pressures.