After a run of
weak inflation reports stretching back several months, there was a slight uptick in the October reading of the Fed's favored inflation measure, the core personal consumption expenditures price index.
The weak inflation report helped push the dollar and Treasury yields lower.
Not exact matches
At the same time, manufacturers pointed to the
weakest rate of input price
inflation so far in 2016, despite rising demand for raw materials and some
reports of renewed stock shortages among suppliers.
The release was a bit of a Goldilocks
report for the market, as it continued the narrative that the economy is growing at a healthy pace, but the
weakest performance in consumer spending in five years punched a hole in the
inflation bubble that hurt the market early in the week.
Yesterday's
inflation reading comes on the heels of a
weak retail sales
report, which should come as no surprise, given that so many people in the US have left the labor force.
Investors were cautious after a largely
weak performance on Wall Street on Thursday as some disappointing earnings
reports offset strong economic data, while bond yields slid after a surprising slowdown in eurozone
inflation.
Investors were cautious after a largely
weak performance on Wall Street overnight as some disappointing earnings
reports offset strong economic data, while bond yields slid after a surprising slowdown in euro zone
inflation.
Assuming the ECB had become worried about
weaker core
inflation dynamics at the end of last year, the February HICP
report certainly did not help.
Next, the pound got slapped lower on Tuesday when the U.K.'s October CPI
report was released since since headline
inflation in the U.K. only printed a
weak 0.1 % month - on - month rise, missing expectations for a 0.2 % increase and slower than the previous month's +0.3 %.