Not exact matches
However, although the BCC believes the country will manage to avoid recession, it does anticipate slowing economic momentum over the next two years given higher
inflation trends and a continued lack
of clarity about the process by which the U.K. leaves the EU.
«In the grand scheme
of things, this report merely shows that euro zone
inflation pressures returned to «
trend» in May following an unsustainable jump in April,» Claus Vistesen, chief euro zone economist at Pantheon Macroeconomics, said in an email.
Indeed, the broader
inflation trends shown in Friday's data confirm recent signs
of a more sure - footed recovery in the world's second - biggest economy, allowing authorities to resist any fresh monetary easing as they move to curb an unsustainable build up
of credit in the financial system.
Polish
inflation figures which often predict
trends in the rest
of the region, showed a pick - up in the annual rate to 1.6 percent in April from 1.3 percent a month earlier, largely in line with expectations.
Low volatility shows that investors believe that long - term global economic
trends of modest growth and tepid
inflation will also define shorter - term cycles.
With the
inflation - adjusted value
of small business loans still under 80 %
of what it was in 2007, that's a concerning
trend.
Since the bank's
inflation bull's - eye is two per cent, the latest reading reinforced experts» expectations that Bank
of Canada governor Stephen Poloz will continue to gradually raise the
trend - setting interest rate.
If Poloz was correct, and the media only care about prices when they spike to absurd levels, then let me suggest that some us are about to make up for it by working overtime to explain why the Bank
of Canada wants to raise interest rates even though core
inflation is
trending away from the two - per - cent target.
«What makes the Bank
of Canada uncomfortable is
inflation that is north
of target at a time where growth isn't necessarily that different from
trend,» said Ian Pollick, head
of rates strategy at Canadian Imperial Bank
of Commerce, by phone from Toronto.
Although a number
of temporary factors are keeping headline
inflation near its 2 per cent target, our measures
of core
inflation are in the lower half
of the target band and have been
trending downward in recent quarters.
So far, the percent raising prices is not supportive
of serious
inflation, but a clear
trend has been established.
The Bank also monitors a set
of «core»
inflation measures that allow the Bank to «look through» temporary changes in total CPI and focus on the underlying
trend of inflation.
Core
inflation is higher than the underlying
trend, because a decline in the dollar is raising the prices
of imports.
Finally, in a nominal GDP targeting regime, a decline in r - star caused by slower
trend growth automatically leads to a higher rate
of trend inflation, providing a larger buffer to respond to economic downturns.
The weak economic performance in the first half
of this year means that Canada has more excess capacity, which is increasing the downward pressure on the underlying
trend in
inflation.
«The extra reward you get in the form
of higher yields from stretching on maturity will come back to haunt you should
inflation trend upwards faster than expected,» said financial advisor Manisha Thakor, director
of wealth strategies for women at The BAM Alliance.
As you've pointed out, your 2 %
inflation target plus 1.5 %
trend productivity growth allows for noninflationary nominal wage growth
of 3.5 %.
However, Meyer acknowledged signs
of a slow recovery in the housing market, which should add 0.2 % to GDP this year, while her colleague Priya Misra, head
of U.S. rates strategy, said
inflation is not a concern because the U.S. Treasury market is on a continued flattening
trend.
Asia has displayed the strongest growth
of any emerging region, as well as favorable
trends in
inflation and current accounts measures (Source: IMF, Bloomberg).
Total
inflation, however, remains much lower than the underlying
trend because
of past declines in fuel prices.
As the temporary effects dissipate, all these measures
of inflation will converge on the underlying
trend.
As economies become more integrated, and as the share
of goods and services that are «tradable,» or are affected by trade, increases, the challenge
of extracting some measure
of underlying or
trend inflation gets more interesting.
Core
inflation is currently higher than the underlying
trend, because the lower dollar is raising the prices
of imports.
Technology is just one
of many major
trends that are contributing to weak
inflation.
It is worth noting that there was a clear downward
trend in
inflation between 1980 and 1990, interrupted by the effects
of the exchange rate depreciation in the middle.
To do so credibly would presumably require confidence that the upward
trend in
inflation seen over the past couple
of years would be likely to turn down.
* Information efficiency * Economic slack * Contained
inflation * Coordinated Central Banks * The growth
of China and India and their continued purchasing
of US debt * The growing perception that US dollar denominated assets are the safest assets in the world * A 30 + year
trend of declining rates that is telling us we're more adept at managing
inflation with each new cycle that passes
At the onset
of the Asian crisis, the Australian economy was growing at around
trend rates, with domestic demand beginning to accelerate, and underlying
inflation at 1.6 per cent.
Coupled with the falling dollar, which raises the cost
of imports, those
trends could elevate
inflation for several years and, he said: «The upside risk to
inflation is something markets should be paying more attention to.»
Specifically, this suggests that after several years
of fiscal austerity and several decades
of declining
inflation, these
trends are on the cusp
of reversing.
However, our core
inflation measures are all in the lower half
of the target band and have been
trending downward.
In each issue I summarize developments and
trends for the economy, labour markets,
inflation and wages, and also include short piecesÂ
of 1 - 2 pages on related topical issues. In this issue, the focus -LSB-...]
As we noted in our July Monetary Policy Report, when all the temporary factors are stripped out, the underlying
trend in
inflation in Canada is in the range
of 1.5 per cent to 1.7 per cent, below our target
of 2 per cent.
And it's because
of this progress that
inflation - adjusted commodity prices have generally been
trending lower for 200 years.
Given the absence
of a public trading market
of our common stock, and in accordance with the American Institute
of Certified Public Accountants Accounting and Valuation Guide, Valuation
of Privately - Held Company Equity Securities Issued as Compensation, our board
of directors exercised reasonable judgment and considered numerous and subjective factors to determine the best estimate
of fair value
of our common stock, including independent third - party valuations
of our common stock; the prices at which we sold shares
of our convertible preferred stock to outside investors in arms - length transactions; the rights, preferences, and privileges
of our convertible preferred stock relative to those
of our common stock; our operating results, financial position, and capital resources; current business conditions and projections; the lack
of marketability
of our common stock; the hiring
of key personnel and the experience
of our management; the introduction
of new products; our stage
of development and material risks related to our business; the fact that the option grants involve illiquid securities in a private company; the likelihood
of achieving a liquidity event, such as an initial public offering or a sale
of our company given the prevailing market conditions and the nature and history
of our business; industry
trends and competitive environment;
trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment,
inflation and interest rates, and the general economic outlook.
And while Canada - wide median incomes were up by an
inflation - adjusted 3.5 per cent over that time, the performance was heavily influenced by oil - rich provinces such as Alberta and Saskatchewan — a
trend that's since hit a wall, thanks to the collapse
of global oil prices.
An obvious feature
of this
inflation - adjusted series is the pattern
of long - term alternations between up - and down -
trends.
* Information efficiency * Economic slack * Coordinated central banks * The dominance
of China and India and their increased purchase
of US debt * USD and US assets as a continued safe haven * Rates have been going down for 30 + years in a row, the
trend is telling us we're more adept at managing
inflation with each new cycle
Quick take: At the end
of April the
inflation - adjusted S&P 500 index price was 108 % above its long - term
trend, down from 112 % the previous month.
And it is quite likely that this change occurs in reaction to the current economic data flow, which reveals core
inflation to be
trending upward, nearing the Fed's target
of 2 %.
The
Inflation GPS, developed with BlackRock's Scientific Active Equity team, incorporates big data on price trends and a daily - updated «nowcast» of inflation - related statistics to give a read on where core inflation is headed in major e
Inflation GPS, developed with BlackRock's Scientific Active Equity team, incorporates big data on price
trends and a daily - updated «nowcast»
of inflation - related statistics to give a read on where core inflation is headed in major e
inflation - related statistics to give a read on where core
inflation is headed in major e
inflation is headed in major economies.
Companies are still very focused on currency
trends that are impacting their business as well as on margin pressures — whether it's cost
inflation through wage growth or price deflation and the compressing
of margins.
The Reserve Bank
of Australia cut the cash rate in May from 2 per cent to a record low 1.75 per cent out
of concern that
inflation was
trending too low, following first - quarter
inflation data that showed prices had fallen 0.2 per cent in the first three months
of the year.
Under this scenario, an eventual rise in wage growth would likely be accompanied by a secular rise in realized
inflation (
inflation expectations would
trend with energy prices), and the policy battle onward may resemble that
of Paul Volcker instead
of Ben Bernanke.
Thus if the above chart does represent a
trend change it would imply economic out - performance by China in terms
of higher
inflation outcomes and more competitive exports relative to Japan.
The data overall are consistent with the picture
of UK
inflation trending lower in the coming months as the impact
of the pound's post-Brexit vote depreciation fade somewhat.
Survey - based measures
of inflation expectations have shown divergent
trends in recent months.
What is important for market dynamics is not the actual static level
of inflation but the
trend.
This assessment is based on an evaluation
of the recent
trends in core
inflation and likely developments in demand conditions, and takes into account the dampening influence
of the monetary policy adjustments since November 1999.
It is worth noting that the core Consumer Price Index (excluding food and energy) stood at a year - on - year rate
of 1.8 % in July, and that the Fed may be content to see
inflation at least
trending upward — without necessarily hitting 2 % in the near term — before deciding to act.